Transcript for:
Essential Forex Trading Guide

Forex Trading forget absolutely everything you seen and learned on the internet about it this is the only video you need to know about Forex Trading let's begin so what exactly is trading so the textbook definition of trading and pretty much the common sense one is when you're trading something for something else you're exchanging one good for another good for example let's say you have a piece of wood and you want to exchange it for some food you are now trading one thing for the other this is the textbook definition now this is where you're going to get one asset and exchange it for the other this is exactly what happens in the markets you're exchanging one asset digitally for another one now you're not actually holding these assets tangibly obviously because they are digitally which gives you a major advantage to leverage that in your favor and make a living out of this and this digital version of trading is actually in many markets you have it in Forex trading you have it in Gold you have it in Commodities in currencies you have it in Futures there's many different types of digital Forums on how to actually make money from the markets in trading where you are doing pretty much the same thing on all different types of trading platforms you're pretty much buying one thing exchanging it for the other for a profit or you're selling one thing exchanging it for the other to make a profit you can make money if you buy something in trading and then sell it or you can make money in trading if you sell something and then you sell it at another price point more on this later in the video and this isn't anything new US humans we've been actually trading things for thousands of years I'm talking about back in the day before even money was a thing we were exchanging cattle for wood or we were exchanging wood for some fish some people had Goods that other people didn't have so we were trading and exchanging one thing for or another just in different amounts where one person was gaining and so was the other person so it was an equal exchange because both the people had to do it one person needed fish the other person needed wood one person needed the wood for fire the other person needed fish to eat and if you have an excess of each instead of pretty much you're not using it you exchange it for somebody else for something that you need so now in Forex Trading we're obviously not trading fish for wood we're trading one currency for another currency for example the Euro being traded for the US dollar the US dollar being traded for the Great British pound have you guys ever gone to the airport and as soon as you get off of the plane you see these big exchange money spots that you can pretty much go to and if you're in a different country with a different currency you can exchange $100 for $100 of that currency's actual physical dollar we have all actually participated in the currency exchange participation and this currency trading happens every single day I'm talking trillions of dollars yes trillions not Millions not billions trillions of dollars that are being exchanged every single day to they have the exact number it's actually $6.3 trillion is moved in the market every single day so when you're trading the foreign exchange markets you're trading one currency for another but you're not actually buying currency tangibly and you're not going to get this money in your bank account you're not going to hold it in a reserve account or in a different exchange you're not doing any of that you're simply betting if price will be going up or if price will be going down you're essentially betting that the currency will get stronger or weaker versus the other currency and the way that this works is by fundamentals it's by the governments by the interest points of that country by the Banks behind that country and they're funding by the economy of each and every country and if the country gets stronger than another country that currency will rise making it stronger than the other currency so there's a spread there that it will go up in value and you make money on that spread and let's say if a currency gets weaker than a different currency then there's a spread that you can also make money on that as well so for example let's say that the US has had a a recession and the euro is actually in a booming Market that means that the US dollar is going down and that the euro is going up this is where you would want to buy the Euro and where you would want to sell the dollar because the market is clearly bad with the dollar so you want to put sells in that the dollar will go down and you want to put Buys in that the Euro will go up because it is doing better than the dollar it's almost a win-win scenario because the fundamentals are driving price down for the US dollar and driving it up for the Euro now bear in mind you're not only just buying the Euro or you're just only selling the dollar you can't do that you have to bet on a currency pair what is a pair well it's you know two things it's like when you have a pair of shoes you have your left shoe and your right shoe if you have a pair of sandals you have your left sandal and the right sandal so when you have a currency pair you have one currency pair and then another currency pair and what they are doing is they are together battling each other who gets stronger than the other who's driving price up and who's driving price down so for example let's use Euro USD which is the most known pair in the whole entire Foreign Exchange Market it is the most traded currency pair in the whole entire Market it has the most volume and the most movement meaning that there's more opportunities and how you can actually capitalize off of it but more on that later in this video so when you're actually trading the Foreign Exchange Market you have to trade on a currency pair Euro USD if you were to buy euro USD you are betting that the euro is going to get stronger than the dollar because the Euro drives price up and if you were to sell Euro USD you are betting that the dollar will get stronger than the Euro that is because in the Euro USD pair the euro is the base of the currency pair and then the USD is the quote so basically the euro is what drives the price up and then the USD is what drives the price down so if you see the price going up that means that the euro is getting strong and if you see the price going down that means that the USD is getting strong so if you want to bet on the dollar getting stronger you have to sell Euro USD because the US dollar is going to get stronger than the Euro and if you want to buy euro USD you are betting that the Euro will get stronger than the dollar and this works for all currency pairs across the market for example gbpusd It's the Great British pound versus the dollar so if you buy gbpusd you are betting that the pound will get stronger than the dollar and if you are selling gbpusd you are betting that the dollar will get stronger than the pound and in the Foreign Exchange Market there is thousands of pairs I'm talking literal thousand like you can have the US dollar against the Mexican peso you can have the Mexican peso against the Russian dollar and that is the beauty of this Market there is so many different types of opportunity because there is so much more money being moved than the stock market than the Futures Market than even the crypto Market there is $6.6 trillion doar being moved every single day because this is a market of the whole entire world of all the currencies in the world combin in one single Market compared to the New York Stock Exchange or us3 you're only dealing with the companies inside of the United States which can only be so big so that is pretty much a very entry level of what Forex is now there is many markets out there like Futures Commodities cryptos options and there's great opportunities there but nothing compared to Forex so now let's actually dive deep into actually how this Market works and how you can learn everything you need for you able to go battle this Market every single day so now that you've seen that there's different types of currencies that you can actually trade all around the world now there's actually different types of formats that you can trade there's different types of way on how you can approach these different types of currencies that they all move very different so to begin with you have scalp trading which is known as the lower time frame Traders these are the traders that that have the faster movements that they're in the market a lot less time they have a higher win rate but a lot less of a risk reward these are traders that usually are kind of stuck in front of the market the majority of the day or the majority of the night that they have to dedicate hours sitting in front of the computer to just find one little good opportunity because they're only in the market probably within 1 to 2 hours of the market movement which they can either be winning very fast or losing very fast and some scalpers can either enter one to three trades every single day in order for them to make some money or just make back losses from the previous day because the majority of the scalpers will lose the majority of the time because they're taking a lot of Trades constantly and scalp trading is actually the most attractive type of trading that beginners kind of approach to it because they just passionate about trading and they want to be in front of the charts as much time as they can so they approach scalping thinking that's going to be the best way for them to make money next it leads me to day trading so I'm sure we've all heard the term oh he's a day trader or I know a day trader well it's actually a very common term because it's what the majority of the people that work a 9 to5 attempt to do because for you to be a day trader you pretty much have to be in front of the markets while you're in a job so people kind of treat it as their side income and day Traders are usually in front of the market Mars a little bit less time than scalpers but they are definitely taking a lot less trades they would be taking maximum one trade every single day because anything more than that you fall into the category of scalping and day Traders are a bit more selective when it comes to the trades and their trades can last anywhere from 1 to 3 days to play out unlike the scalpers that their trades can last anywhere from 1 to 2 hours so day trading your trades are actually being held one or 2 days compared to scalers which is a little bit of a Time next is going to be swing trading so swing trading is actually a approach of the market where you are swinging the market meaning you're just chilling you're going to be in maybe one position a week maybe two positions a week if you find a good probability trade and you'll hold it throughout the weekend so you'll be in the position for anywhere from 4 to about 8 to 10 days and these positions usually run a lot longer giving you a lot more profit and you actually have to do a lot less work you're probably in front of the market for one to 3 hours every other day you don't have to be involved in the market that much because as soon as you enter a trade it's pretty much letting your trade ride and so it goes in your direction or against you but swing Traders are taking a lot less trades but they are risking a lot more compared to the day Traders and compared to the scopers and swing wi Traders usually tend to have the highest win rate because they're being very very selective on the type of Trades that they take because they're only taking anywhere from one to two trades a week and then next is going to be position trading so position trading is a Trader or investor that pretty much ends to a trade with a long-term Vision they want to be in the market for anywhere upwards of a month and they are not looking to liquidate their position anytime soon because treating it as a investment as a position that they're entering in the market so they're prepared to be involved for about 1 to two to three months to just simply have their trade get as much profit as it possibly could be and position Traders or investors they'll probably take one to two trades a month if any usually they stick to one trade a month because they are looking at the market longterm they're not looking to have any short-term gain and they're looking to make minimize their losses as much as they possibly can and investors and position Traders are actually the ones that lose the least because even if their positions go into a loss they're going to continue to hold it long enough until it goes into profit and if you hold a trade long enough it will go back into profit so as you can see every single format of trading actually scales up on the amount of time that you're actually holding a position a scalper is involved in the market anywhere from 1 to 2 hours a day a day trader anywhere from 1 to 2 to 3 days in the market then you have a swing Trader where it's anywhere from 4 to 8 to 10 days and then a position traded where it's upwards of a month so every single different type of format in trading they are actually holding their trades longer but they're actually taking less trades so as the formats they scale so does the time they hold the trade but the amount of Trades they take is a lot less and all of these different formats you can actually apply to all of the markets you can apply it to Foreign Exchange trading to Commodities Futures options crypto everything that has pretty much a chart with candlesticks that go up and then they go down but the best one and the one where I've had the best experience and the most success is going to be Forex Trading that is because it offers the best things that no other Market can offer it has 245 access meaning you can trade Monday through Friday any hour out of the day so if you work a job you can trade when you get out of your job if you're up late at night you can trade late up night if you're up early in the morning you can trade early in the morning compared to let's say options or stocks you can only trade 9 to 5 which kind of sucks because if you have a job you can't get involved in the market You're simply limited to what you can actually do in the market the next reason why it's my favorite and why I got involved is because the entry barrier for you to get started in Forex Trading you can start with as little as $100 or compared to the stock market where your entry barrier is going to be $25,000 as your minimum first investment and I don't know about you but when I first started trading I did not have that kind of money so I simply couldn't get involved another reason why it's the most reliable is because you're literally trading money it's impossible that the currencies of the world simply disappear from one day to another if that happens we're in a big problem but that will literally never happen compared to a company in the New York Stock Exchange they can simply just go bankrupt one day or get sued and you're done for it or a crypto can pretty much get rugged pulled and all your money is gone from one day to another the Currency Exchange Market is here forever and it is going to be here forever countries run on these currencies and they need to do that for it to keep going for that reason why the Currency Exchange Market only gets bigger year after year and the opportunities are going to be there forever and adding up to that you can actually get involved for free you can actually test and apply the markets and try and figure out if it's going to go up or down with fake money you can use demo money to test your skills and learn it before you actually put real money at risk and when I was trying to get involved in the crypto Market this simply wasn't a thing they don't allow you to use this with fake money it wasn't even an idea versus in the Foreign Exchange Market not only can you access it whenever you want you can actually test it with fake money which is actually really cool and if you don't know what demo is it's pretty much simulated markets it's demo it's not real money it's paper trading fake trading where they just give you fake money in an account where you can get and pretty much go test it out so if you want fake $100,000 and you want to test out your skills you can do that if you have if you have $5,000 to put into the market you want to test out your skilles first you can create a fake account with $5,000 which is actually amazing so that way you can actually see how far you can get with demo money so that when you're ready to deposit your own money you're ready so now that we understand how the Forex Market works very simple way we have to understand how can we actually execute into these markets what platforms are required what platforms should you look at what platform shouldn't you look at and this is where it can get a little complicated if you don't have the right video and that's why every everything is inside of this video which is going to teach you the only platforms that you're going to be needing in order to be able to execute trades in the market successfully now there is hundreds of different platforms there is thousands of different people directing you to different places but these are the only platforms that I have personally been using for the last seven years trading in the markets and I have never ever needed anything else when it comes to actually executing in the market other than these platforms and I've made probably around $110 million on just using these two simple platforms you do not need anything else other than these two platforms that I'm going to be explaining now and then obviously a third one that you would have to do your own due diligence on but this is going to make sense in just a second the first platform is going to be trading view SO trading view is pretty much what its name says trading view you're going to view the trades on this website this is a well-known website I think used around about 80 to 90% of the market and this is where you're going to be actually looking at the charts this is where you're going to be looking at the markets going up at the markets going down this is where you're going to look at the markets for example Euro USD have we were setting an example gbpusd GBP CAD so on and so forth now this platform is strictly and only to simply just look at the market this is where you're going to be identifying if you're ready to buy or if you're ready to sell but you will not be entering a buy or sell on this platform it's something that the platform offers but I personally have never used it neither has anybody in my community or I've heard anybody of ever using it before it's something that they offer but I personally rather stick to the different options that I'm going to share with you now so trading view to keep a very simple example it's just somewhere where you can view the charts and this is a platform where you're only going to be looking at stuff you're not going to be executing other than just things you will be drawing on the charts to identify if there's a high probability of it going up or a high probability of it going down this is where you will be doing your charting this is where you're going to pretty much spend I'd say 90% of the time that you're in front of the markets will be on trading view because when you actually execute a trade it will be on a different platform you're not going to be looking at the numbers on the screen you will simply be looking at the charts because what's on the charts will reflect on the numbers on the screen which will be on your phone or your computer wherever you decide to actually take the trade but trading view is simply just so you can see the charts whether they're going in your favor or against it and the simplest analogy that I can put is like you right now watching this video you're watching this video to intake the information that I am giving you so then you can learn and then you can go execute in the market but you're not executing a trade on YouTube you're not doing anything on YouTube other than simply getting educated and absorbing the information that I am giving you or that you're simply watching on YouTube and you can watch the video in a bunch of different formats you can watch shortterm videos you can watch long videos like this one you can watch it in theater mode and full screen mode or on your phone so there's different types of ways on how you can intake this information it's the same exact thing with trading view you're looking at the charts in a bunch of different ways so you can intake the information so it can tell you if you're ready to buy or if you're ready to sell but you're not doing anything other than just looking at the information that the market is sharing with you on trading view so let me actually take you to trading view just so you guys can get a very simple Insight of what this actually looks like and what to pay attention to and what to not pay attention to because this can almost be very overwhelming at the beginning and information overload and trust me it happened to me and I almost kind of got intimidated and didn't even want to look at it too much because I just didn't know what to look at so I'm just going to explain to you right now what are the only things that matter when you log into trading view very briefly and then you're going to see what you shouldn't be paying attention at because honestly there's a lot of stuff here that you really don't need so diving into trading view right now this is as soon as you log in this is what you will be seeing you will be seeing pretty much to your top left hand side is your account and you're going to see all of these tools that are randomly right here to the left hand side that you probably have no idea what the use is for but everything inside of here is basically a tool that you can use to use to your advantage to chart up the chart is simply things that you can use to put on top of the chart so you can create an edge on the trade that you will be taking you will not be needing everything that is in this tool box right here this is absolutely excessive and you only need to use about seven to eight tools out of everything this platform has to offer so if you come back here to trading view this is just a simple Ray example that I have just showed you and it is really not necessary at all within this section you have many different types of lines you have the info line the extended line trend line horizontal line d d all these lines that literally I do not use and you will never need to use it you will only need to use three things from this line section and that is going to be the trend line the horizontal line and the horizontal rate so if you'd want it all you have to do is put a little star and you put a star you will notice that it will pop up on this box right here that is going to pop up in front of your charts these is going to be your favorite tools out of all of the ones that the platform has to offer this is so you can pretty much filter out the only things that you need because again there's many things in this platform that you do not need to pay attention to and there's many things in this platform that as of today being a multi-millionaire trading on this platform that I have never used meaning you will never need to use them either so just simply I'm going to explain to you what they are and don't even get curious on learning what it is simply just know that it's there and know that you will not be needing it ever to become successful in trading so moving on you have the channel section and this is where there's different types of channels Pitchfork shift Pitchfork all of these things that make absolutely no sense and all you have to do is just completely ignore it you will not be needing anything inside of the line section other than these three because this has no indication to creating an edge in the market how I have been trading for the last seven years now there's might be some strategies out there that do but the majority of them don't really use it especially mine so when it comes to here on the second section you're going to have your Fibonacci area where there is about 10 different types of Fibonacci and we will be using absolutely zero of these Fibonacci these are all different types of random stuff that just make your chart look weird like look at this you're going to tell me you can create an edge with this funnel or this fan whatever this is even called No it simply doesn't make any sense it's just accumulating your chart it's putting mathematics behind it that honestly it's not needed when it comes to trading all you will need when it comes to trading is read the price action which price action is the chart but we'll get into more details later in this video I can only get into these details when you actually know how to visually see them because you have to see them on a platform and this is the platform that you're going to be seeing them in so you will not be needing any of this complicated stuff this just makes the trading complicated and very intimidating to a beginner Trader and you don't need anything inside of this Fibonacci section along with the gain section you can simply move on to the next section which is going to be the pattern because again Fibonacci is just an equation where you can create an edge on it but I will explain to that again later in this video right now I just want to show you what the platform looks like and I'll get into more details later along with the patterns that we are in this section now and the only pattern that we will be using is going to be head and shoulders so you can simply put a little star next to the head and shoulders and you will notice how it's going to pop up over here to the top right hand side corner we will not be using the ABC pattern or whatever this is I've literally tried to figure out many times and it doesn't work other than the pattern section we will completely avoid the Elliot waves and this section down here this will not be needed in this trading approach simply because it is information overload these are all different types of indicators to read the market and indicators as many of you may know or if you don't know they don't have a high success rate because indicators are delayed they take time for the markets to be able to have a reaction to them so by the time you get your entry based off of an indicator or one of these tools you're pretty much late already so we want not be paying any type of attention to any of these different types of Elliot waves or any of these types of cycles that the market has to offer moving into the next section is going to be the projection section you're going to put a star on the long position and a star on the short position this is pretty much going to be the tool that is going to tell you if you are buying or if you are selling simply just take a quick look at it it's probably this green and red box that you see all the time these Traders put but don't worry about it more on this later in the video right now I just want to get you to be very familiar with looking these things so when I dive into detail on every single one of them you're very educated and up to speed and they make sense right away moving on we will be looking at the brushes you only have to put a star on the brush and a star on the rectangle the path and the eclipse everything else in this section you will not be needing you will not need to be paying attention to it again it's information overload what they did was put four different types of arrows you have the arrow marker which just looks excessive then you have this type of Arrow and then you have this type of Arrow right here which is just another arrow it's just different types of ways that the platform offers services for all different types of Traders which is cool because pretty much they are meeting the standards of every Trader around the world but but you're only one Trader you shouldn't be looking at all the information for Traders all around the world you should only look at what's going to make sense for you and in this video I'm going to only show you what's going to make sense for you so now moving on to the next section is going to be this T so this is going to be the text and the notes section so you want to put a little star on the t and a star on the call out you won't need anything from the content section because this is pretty much whenever you want to write notled on the charts you can simply just write it on the text section or if you rather want to call out a specific section in the charts you can just point at it and you have a call out section these are both things that I just Ed to actually just have notes on the chart if you want to save it for the future if you want to look at it when you're back testing or if you just want to hide a message in your chart moving on now to this little Emoji section over here you will not be needing any of these emojis trading view is very clever uh they literally put the whole entire Emoji section of an iPhone I don't know why they did this I've actually never used this in my life so I take my trading very very serious so I will not be putting any emojis or any hearts or anything on my chart I keep this strictly to business and I only look at the stuff that matters this clearly does not matter imagine putting like a smiley face or a winky face on your chart and then when you go show your friends your trades they see that and they're like what the hell yeah so you don't want to focus on any of these emojis moving on you have the measurement section so you can't put a star on this because they will permanently stay on this section right here but this is where you'll be measuring the trades whether how long they are how many days the actual percentage it went up or the percentage it went down this is the measurement tool that you can use to measure pretty much everything when it comes to the markets and we're going to explain later in this video how you can actually use it just this is what it is this is the zoom in and zoom out I have never used this button and I will not be using it today because I am not interested in using it I have never used it this is a magnet I have no idea what this is good for I have never used it in my life so we will not be paying attention to this at all this is going going to be the stay in drawing mode which I also have never used in my life and you will not be needing it it is absolutely pointless along with this lock all the drawing tools I've never used this in my life and I do not plan to ever use it as well and I have not used it to this day moving on this is going to be the hide a drawings this will be a button that I use frequently when I usually have a lot of stuff in front of my charts let's say your charts are a little bit accumulated and they're a little bit you know uh clogged up and you want to clear it up just for a second you can just click this button and it will clear it up and you click it again and it brings all of your indication on the charts back so again you can't put a star in it you can simply just click it and it will disappear your trades in tools and then bring it back whenever you need it so we don't really use it but it's good to know what it is and then next is whatever the hell this is I have no idea what it is I've never used it and then obviously which is the trash section you can simply click the trash and you can remove all three drawings one indicator or three indicators or simply if you want to delete something you can just click it and you can click the little Trash button which will pop up right here and then you can delete it if you want to delete one thing at a time and then the last button in this chart it's going to be this little star to the bottom here so as you can see it says show favorite drawing tools toolbar so this is our favorite tools so this is our favorite toolbar of our trading tools if you want to see it you you have it there if you don't you simply click the star and it'll disappear if you want to bring them back you simply click it again and it will pop up again so for the majority of the time I say 99% of the time you're going to have this star open because these are your tools that you're going to use to analyze the markets to tell you if you're interested in buying or interested in selling so this is everything that you will be needing and what everything pretty much consists of of this left hand side on trading view moving on now to the bottom right of the screen you're going to see this stock screener I have no idea what this is I'm going to click it just for this video and I guess something popped up down here I have no idea what this is we don't trade stocks so I will not be paying attention to this ever and I have never paid attention to this um same thing goes for the pine editor same thing goes for the strategy tester and trading panel I have never used any of these tabs in my seven years of trading the market so there is absolutely no need for this information here along with this 1 day 5 day 1 month 3 months 6 month year one year so on and so forth you will not be needing to pay attention to this because we will be looking at the time frames that we need in just a second so this section pretty much all down here sums up of nothing we will will not be using absolutely anything from this section here moving on to this timer right here this is currently the timer of of where I am right now as you guys can see it is currently 2:34 in the morning Miami time so yes I am recording this video at 2:30 in the morning to show you guys how hard I put my time into the value that I provide to you guys it is currently a Friday night and I can be out partying or clubbing and having fun but I'm like you know what I want to make this video for an Alex when 7 years ago he wanted to get started in trading and he wanted to know everything in one single spot he want to make sure that he didn't have to go watch a hundred other videos and see if he can piece everything together so I'm making this video for you guys right now pretty much at 3:00 in the morning so you guys can just watch this one video and have absolutely everything you need to learn trading and apply it to the market so make sure that you listen and pay attention to the things that you need and to the things that you don't need because I am making this so easy for you guys that you do not have to go watch any other video everything is going to be in this video from this point all the way to the end I'm giving 100% dedication to this so you guys can have success like me and shorting your learning curve by years if I would have had this when I started trading o I would have been profitable in my first 6 months but everything happens for a reason that's why I'm here making this video for you guys now so now going back to the Chart this is the time zone of where we currently are and then this is a little arrow to show the panel uh which I have never used and this is just a maximize panel which I have never used either I have never used anything of this bottom section over here this section over here to the right hand side is pretty much information about the currency pair that we are interested in trading now again keep in mind a currency pair is a pair of two different types of currency the example that I was setting earlier was Euro USD which is the euro dollar versus the United States dollar as you guys can see this is Euro USD the euro versus the dollar this is a Forex major pair this is currently the asking price of this market and this is just simple performance standards that the platform has to offer I have never used any of these stats in my favor to enter a trade or to get out of a trade I have never used this in my life usually what I tend to do is just put this note section so it can just not distract me and I can write whatever notes that I want right here but I have never used the actual information that they apply when they're showing you the currency pair as you guys can see moving up a little bit more you can see all of these different currency pairs if I already click a different one this is the Euro and the Japanese Yen Euro JPY you can see the two different countries right here this is indicating a strong buy and I'm telling you right now 90% of the time this doesn't work so there's no reason why you should ever be paying attention to it so I skip this little section right here which is a metric section which is literally where we are right now the notes section and then this little three dots so I have never in my life ever used any of these buttons they're absolutely pointless and they are needed for nothing in order to become successful in trading moving on to this bottom section right here I guess this is an help center I have never used it as well and along with a calendar which I have never used in my life when it comes to trading especially on this platform moving on up here every single one of these buttons to the top right side of trading view is absolutely pointless I don't know what any of them are and I have never put any time to even knowing what they are because from the moment that I came into trading I just wanted to focus on what matters I wanted to focus on what I was trading and what I was trading is the chart it's literally these candlesticks that are in front of you this price that's going up and down you're not trading all these different options it's information overload the only thing you will be needing is this top right button which is going to show you your watch list which will be the pairs that you are interested in trading now what pairs should you trade what pairs shouldn't you trade going to explain more on this later in this video so make sure you stick around and if you haven't subscribed hit the Subscribe button so moving on to the top right hand side corner this is going to be a publish button I've never never used it as well and I have never used absolutely any of these buttons that are here to the top right hand side of this trading view ever there is absolutely no need for it and I have never used it oh and actually a fun fact literally just the other day I found out what this button did I'm talking about like a month ago I figured out you click this button and it just zooms into the whole screen that's how I did that right there that's how I literally put the whole screen on that monitor I didn't know how to do it before I just clicking random buttons and that popped up it's kind of cool but it's not going to make you profitable so there's no reason to pay attention to it so if you lose your list for whatever reason you simply click this button and it will pop up right there moving on to this blue list this is where you're going to list the pairs that you will be trading you can have a red list an orange list purple list Blue List whatever color list that you want currently we are on my blue list but this is pretty much almost like filtering out your contacts if you want to have contacts that are your favorites if you want to have contacts that are primary contacts that are secondary they're all the same in the same contact list but some are in the priority others are not in the priority well this is the exact same thing but instead of putting it by different sections it's by different colors moving on to this different button this is going to be the symbol section this is going to tell you exactly what symbol you are trading whether you're trading Bitcoin Nas Euro JPY EUR USD the list goes on it just indicates you at this section is the symbol this is last change and change again I don't even know what any of this stuff are absolutely pointless to me along with these three buttons right here I have never used them and I do not plan to ever use it that's as far as my knowledge goes with it continua to the middle top section of the screen you can see how there's these two little arrows so if you've ever used Excel if you've ever used uh word and you make a mistake and you want to go back you simply just click this back section and it will go back for you to where it was previously on the chart if you want to go forward simply click this button and it takes you forward to the last point where you put on the market it's very simple and it's very straightforward this is going to be the replay button so I'm going to explain more on this when we actually get into the back texting section of this video because this is the back testing button this is where you can click it and you can immediately te back test the strategy as far back as you want let's say if you were to want to back test to right there the market will pretty much reset to that point where then this bottom section will pop up where you can pretty much start playing the market and start creating you know an edge on the strategy that you're testing or just to get confidence and learn how to read the charts over time but again more on this later in the video when I'm going to explain back testing and how you can actually use it to your advantage so you can capitalize off of it next is going to be the alert section so this is where you want to place an alarm on the charts let's say on Euro JPY you want to place an alarm once it crosses a certain price you simply come here and you can just put enter and you will notice how the alarm pops up right here in the middle of the chart because you just placed it but again more on this later in the video when I talk about setting these alarms at strategic points add an area of in interest support and resistance all of this stuff we're is going to make sense later in this video so don't worry so this is just the alarm section which we will be using very frequently in the charts next is going to be this little square button which I have never used in my life and I do not plan to and then it's going to be the indicator section so you click this button and you will literally get thousands of different indicators that this platform has to offer and you will only be needing one and this one I'm going to to explain as well later in the video so in here you can pretty much just search up whatever type of indicator you want you simply just put indicator and it will literally show you thousands of different indicators that this platform has to offer but you will only be need to using one that is going to make you successful moving on to this section right here these are the different types of chart ways on here you can read the chart you can read the chart on bars candles Hollow candles volume candles all different types of candles or lines or different ways how to read the price that the market is showing and you will only be needing two which is going to be the Candlestick section and the line section so you'll be putting a little star on that and then instead of it popping up on your tools it is going to pop up on this section up here so you can see you put a little star and it will pop up in this section right here now moving on to the next section is going to be the time interval these are going to be the famous time frames that you're trading what is a time frame how does that work how can you do it what are the right time frames I'm going to tell you more about that later in this video this is just so you're familiar with it and you know how to look at it on trading view as you guys can see there's a 1 minute 2 minute 3 minute 5 minute there is literally hundreds of different types of way you can read the market in terms of time frames but we will only be using seven of these time frames we're going to be using the 15 minute the 30 minutes the 1 Hour 2 Hour 4 Hour daily weekly and monthly so you will be putting a star next to the time frame that you will be using as soon as you put the star it'll automatically pop up on this section right here and it will forever be saved as the time frames that you are using to execute on the market and you will not to need to to be using any other time frames other than these this way you only focus on what matters there's so much information on here that if not read correctly you can get confused and it can be very overwhelming and it can throw off your whole entire trading so you only want to focus on just these time frames and later in this video I'm going to teach you exactly how to use them so now that we understand everything within the actual trading view platform let's actually get into the chart right these boxes that are going up and down I want I want you guys to understand everything that this platform shows you so then we can move on to the next platform that you should be using and what platform you should be avoiding so let's actually get into the charts so as you guys can see over here kind of in the middle of the top section you can see how we have already favored the candlesticks and we have favored the line chart so right here this is going to be called the candlestick charts so every single one of these boxes right here is considered a Candlestick this is a Candlestick going up this is a Candlestick going down another Candlestick going down candlesticks going up this is basically the candlesticks representing price going up or Price going down now every single one of these boxes they currently have a time frame and this is right now the daily time frame as you as you can see the daily is highlighted in blue so this is indicating to us that every single one of these boxes is a day it's 24 hours in order to create each and every single one of these boxes or also known as candlesticks so if we were to Simply flick down to the 4our so we click this button right here and then it takes us to the 4our you can see it right here as well each and every single one of these boxes is now 4 hours meaning it takes 4 hours for this Candlestick to close and then if I go down to the 2our it's literally the same thing every single one of these boxes is a 2hour Candlestick meaning that it takes 2 hours from the moment this Candlestick opens for that to then close as of right now you can't see the time over here to the right hand side corner because uh the market is closed right now literally just closed you guys can see down here that the market is closed but if you were to see a little bit like 5 minutes back before you can see how we're we're flickering through the time frames that you can see how much time is left in order for the Candlestick to close because this platform will tell you how much time is left and then if we go to the W it's going to be the one week so as you guys can see if we hover over it is a one we Candlestick so every single one of these candlesticks is a weekly Candlestick very self-explanatory very simple very straight to the point just basically explaining that every sing single box is going to be the time frame that you have been selected right so now we have this line chart so we come here and we click this line it's literally the same representation in price but now you're looking at it as a form of a line you're not looking at boxes you're not looking at candlesticks you're not looking at anything other than lines going up and lines going down it is the same exact price but it's just showing to you in a very different way for example let's say you were to look at a human body with your vision that can be the candlesticks because you can see more details you can see more into the specifics of the hairs the features of a person and if you want to see a different version of the human body let's say you were to look through a thermal vision so you're still looking at the same human body but now you're only looking at the heated parts of the body that the thermal vision binoculars represent compared to if you were to be looking at with your regular Vision you can see everything other than the heated Vision so you're looking at the same human in just two completely different ways now this is the same exact Market you're just looking at it two completely different ways you're looking at it one with more details which would be the Candlestick market and then if you want to look at it with less details and you just want to look at one specific thing you would look at the line chart which in the vision example it would be the thermal vision but we are going to be 99 99% of the time looking at the candlesticks or the market in this Candlestick Market same way how you look at humans you're pretty much look at humans 99.9% of the time with your regular Vision you don't really ever use the heated thermal vision so now continuing into a little bit more detail um you guys can see all of these different colored uh numbers that you guys see here to the right hand side corner this is pretty much how the platform differentiat things that I have selected in the chart so for example this blue line right here it's pretty much indicating to you the live price of where this price is this red box is just indicating to you that it's at that point this black line is at this point this blue box is at that point it's simply just the representing of whatever you put on the chart it just shows it here in a numerical version for example if I were to go to GBP CAD which is the same exact currency PA that we currently on but it say on fxcm if you notice right here I don't have anything on my chart so we can go to the Daily time frame and I have absolutely nothing so let's say if I were to get this box and I were to simply just grab it and drag it like that you would see how it would pop up over here in blue or if I were to come and I would put a horizontal line you see how it would pop up here in Black if I were to add a risk reward tool wherever this is placed you see how it will move there if I drag it down you see how it will pretty much Chase wherever price is going to be depending on where that line is it's just a different way instead of you seeing it visually you can see it with the numbers this is those numbers are going to be very useful for when you're going to be entering a trade but we still have a long way to go before you actually enter the trade I have to teach you how to actually read the market so you can make money with it and then actually how you can apply your entry to the trade so this will become very useful later down the road but I'm just explaining to you what it's for right now so this is just a different way of looking at at the objects that you place on the trading view but in a numerical version and then this section up here I literally have no idea what any of these things are up here this just simply moves every single time I move the mouse I guess it's a different way of measuring where the mouse is in a numerical version um for whatever reason I guess this is used for alos and stuff I have no idea I've never used it in my life I kind of don't like it it's just kind of annoying it's always moving and then obviously this over here is just explaining the server you're on the time frame and then the currency pair and this is pretty much the seller price and then the buyer price that this Market is offering and then here if you were to have an EMA so right now if you have been copying absolutely everything that I've been explaining to you you do not have the EMA set on correctly just yet and I'm going to be doing that later down this video so you can have the same exact EMA that I do which is an indicator that I use that gives me advantage vage and an edge over the market so make sure you stick around so you can get the exact EMA that I use and you can make money with it every single week how I do so with this right here we'll explain later down to the video this is just a little promotions tab of what trading view is and that's pretty much it everything on this platform right here um obviously how you read this market and how you read these candlesticks and how you read this line chart we're going to get into a lot more detail this right here me just explaining to you what the platform is what it consists of how it works now after this I'm going to explain to you exactly how you can learn and make money with these stuff but before that I have several other platforms that I have to show you for you to use so you can take it to your advantage and you don't have to get lost in other platforms and waste time learning things that you simply don't have to learn the next platform is going to be a position size calculator this is going to be where your going to calculate your risk now if you're a beginner Trader and you're watching this please the faster you get this the better because I did not get this into about a year and a half into my trading and I lost so much money because I was just being greedy I was honestly just being a gambler I just simply wanted to come in and wanted to make a million dollars off of a 100 and just because the opportunity is out there to do that doesn't mean it's a sustainable way to trade and it definitely is not something you're going to do for the longevity of of your journey so this platform that I'm about to show you is going to give you a reality on how you should trade and how to calculate your risk correctly so this platform is going to be called position size calculator so as you guys can see I come up here to the top right corner I'm going to put position size calculator and as soon as this you click enter you will see how my effects book position size calculator will pop up now there is many other position size calculators out there I have tested all of them this is the one that I like I'm not getting paid for promo this is a very known website it's super famous I just like how this platform explains it so if you come here to this platform you'll be able to see how you can pretty much calculate your risk very very simple so if you were to come here and you were to create the currency pair I mean if you were to add the currency pair that we would be trading let's say we would be trading GBP CAD for example how can you toast the currency pair you can see it right here you can see it right here you can see it right here you come over here to your position size calculator and you would pretty much place the currency pair that you are looking to trade so obviously we're looking to place jbp Cad and then you would place the account currency that you have currently I am in the US so I would have to place a us-based currency account but if you are a Canadian if you are in the Europe uh you have the pound the Japan whatever type of currency your current account is that is where you're going to then select the account that you simply have then you're going to place your account size so let's say you have $1,000 that you want to risk in the market right so you have $1,000 that you have currently right now in your trading account and you're asking yourself how much do I risk well how much are you willing to lose because you have to have the mindset of every single trade that you're going to take that you can immediately hit stop- loss and if your trades immediately hit stop- loss you have to be completely okay with that loss you can't simply deposit $1,000 and bet the whole $1,000 thinking that you're not going to lose it all well if you don't calculate your risk correctly that's exactly what's going to happen so for example let's say out of these $1,000 let's say you want to risk 5% out of this ,000 which is reasonably high risk but I'll explain more later this in the video when I talk about about percentage based entries and stuff like that so let's say you want to risk 5% you simply come here you put the number five and then the amount of Pips that your stop loss is so this is very simple and again we'll get into more details on this later on but we're just going to use this stop loss for example this stop loss I had a total of 44 Pips this is how it is measured and again I'm going to get into more details how you just use this tool and how you use this risk to reward later down the road so don't even worry and uh we're going to get into more details for now I'm just going to pretty much go straight to the point just so you can see how you actually calculate the risk and how this platform works so this right here is going to be a total of a 40 pip stop-loss what is a pip again I'm going to explain this later into the video it's literally the next subject that is coming right after this so right here you would have a 40 pip stop- loss and then the lot unit would always stay one I'll explain this as well later down the video you simply click calculate and then boom you're going to risk $50 on your account and this is the unit or the lot size that you're going to use it's that simple all this platform does is calculate the risk that you want to place on your account so you can place the amount of units or you can place the actual lot size that you want to bet on this trade whether you're going to buy or whether you're going to sell the same exact thing applies as you can tell right here there's no different option that you can put oh if I'm buying or if I'm selling because the risk should be the same whether you're interested in buying or you're interested in selling but more details on what these other different vocabularies are and how you can use them because I know they can be very intimidating at the beginning but they're actually very simple so now that you understand where you can calculate your risk if you don't understand some of the words in there don't worry I'm going to explain to them you're going to get them right away there's one other platform that I personally don't use but I can see a lot of you guys looking for somewhere to find it and I'm going to Simply make it very straight to the points I don't use this platform anymore because I'm a successful and profitable Trader and I don't need to know these things but I can understand as a beginner Trader it can create curiosity and you want to know where you can get a reliable source that's going to give you this information so I'm going to give you the third platform which is going to pretty much tell you where you can find all the fundamentals and if they're going to be good they're going to be strong if they're not going to be strong this is so you can know exactly what's going to happen in the news section of trading with my strategy and how the way how I trade I don't use this at all but at the beginning when I was learning to trade this platform made things so much simpler that all I had to do was just go to this one place and I would know exactly what's happening for the next two to three weeks with news articles and it would simplify things a whole lot so we don't trade with news we don't need it at all but I'm going to explain to you how you can simply learn how to read it if you're simply curious about it and you don't have to waste time looking at other platforms and wa simply just wasting your time this one platform does absolutely everything now this next platform is going to be called forexfactory.com so again this is not a paid promo I wish these guys would be paying me right now for this video um they don't but they've been around for years even before I got started so this is Forex Factory which is going to be the platform that will tell you exactly the news that is going to be happening in the markets so you would want to come here to C calendar of the actual Forex Factory as soon as you come to the calendar you would want to then click over here this filter section and on this filter section you want to then only have favored the red news articles you can have favored all of them but they simply won't be effective there's these are all different type of news articles that are going to come out they're going to Simply affect your trade for good or for bad you simply will never know I have tried to create an edge around this and it it never works because you never know what's going to come out on the news you can have an idea but you're never going to have absolutely any idea there's no facts behind that you don't know what's going to happen until the news comes out and says what's going to happen so there's simply no reason you should be wasting your time here but it's a good way to get educated and just simply be aware of when it's going to be coming out so back to the platform for you guys can see how it tells you the day that the new article will be coming out and it will be telling you the time along with the currency pair that it's going to be affected and the impact that it will have and what it is related to as you guys can see they have a of a potential forecast of what they believe it can be and what the previous time there was a news article like this was and then the actual outcome but the outcome only happens after if I were to Simply go to the next week let's say if I were to click here on this week you guys can see how Sunday April 7th at 7:30 in the afternoon there's going to be news about the Japanese Yen with a yellow impact news which really does absolutely nothing it's literally somebody probably coming out and saying hey we're doing great or hey we're doing cool it does nothing so this is a news about average cash earnings which as you can see the previous time it was 2.0% they forecast they believe for it to be 1.8 but the actual you don't know into the news comes out usually sometimes they're good sometimes they're accurate but at the end of the day it does nothing for your trades if you notice right here they predicted this one pretty well they predicted this one pretty well and these are all different types of ways that you can simply confirm if your trade is going to be going in your favor or going against it I don't know I don't really ever look at it but this should be the only One-Stop shop platform that you should look at if you're interested in looking at any types of fundamentals when it comes to the news and if you notice if you just want to focus on what matters you simply come here and you exited out of all of the news articles that are not the red ones because these are the only ones that will have impact towards your trades and this is the only section that I look at on Forex Factory I have never used use the forums the trades the news section within itself the market the broker like none of these stuff I have ever used inside of Forex Factory I only used to come in here to know when is a news going to come out and at what time and does it affect my trade and I know this might be something very direct and you might not make any sense right now but I will Circle back to this later into the video when we're actually entering a trade when we're going to have our percentage based entries and there you can you know add this or not add it but this is basically a One-Stop shop where you're going to pretty much know that some can potentially go down X date at X time and they're going to be talking about a X type of currency pair now if you want to use it to your advantage you could but just know that there will never be absolutely any guarantee that you can create an edge on it because there is clearly no confirmation until the news comes out so so far we have three different types of platforms the first one is going to be trading view this is where you're going to physically be seeing the actual markets the second one is going to be my effect book position size calculator this is where you're simply going to be calculating the risk that you are going to determine if you're going to take the trade or not and then the third one is going to be Forex Factory which is going to be if you want to then use news to your advantage or if you don't or if you simply just want to be aware of when there's going to be news so you can avoid getting into a trade these are the three platforms as of right now that I have been using for the last 6 seven years and they have worked perfectly next I'm going to be talking about one more platform and is the platform where you actually execute the trade and this is going to be metatrader 4 and metatrader 5 I'm sure you guys have heard of it before or you guys have seen screenshots of these gurus showing $25 million on a phone and all this stuff and this is actually a very well-known platform it's pretty much what 99% of the industry uses it's actually the only platform I have ever used and it is very simple and it is very straight to the point and this is where you will actually be executing the trade so if you analyze a trade on trading View and you calculate your risk on my effects book where do you actually plug in your trade well you'll be plugging in your trade on metatrader 4 or metatrader 5 what's the difference between metat Trader 4 and metat Trader 5 metat Trader 4 think of it as the iPhone 11 and metat Trader 5 as the iPhone 15 it's simply a much bigger updated and new newer version I personally still use metat Trader 4 I like it it's very comfortable to me and I don't have a reason to update to the next one I simply like it some people like the newer one some people like the older one to each their own but they both have the same exact functions metat Trader 5 just looks like an updated newo version manat Trader 4 simply looks like the verse version but the buttons everything is absolutely the same the speed execution everything is exactly the same so there is a a web version of this which is for a computer and then there is a mobile version for this which is for your phone this is pretty much where you see the majority of people doing it I have only done it on the mobile I did it three or four times on online uh I didn't really like it it's like very old but I like it on the phone better it's very accessible it's very straight to the point so this I'm going to actually teach you how you can use it when we're going to take a trade together in this video so you have to make sure you stick throughout the whole entire video because we're going to actually take a trade together with what I'm going to teach you and as soon as I'm going to take the trade then I'm going to show you how you can use the platform to your advantage so now that we added metat trador 4 and metat trador 5 this is where you're going to actually execute onto the trade this is where you're actually going to enter the position that you're analyzing on trading view now these are all the platforms that you are going to be using pretty much every single day now there is one other platform and that is going to be a broker so a broker is pretty much the middleman in between you and the market so you can't simply right now decide all right I'm going to go into the market and I want to trade your USD and put a buy that's not how it works because the market doesn't accept retail Traders because you need to have hundreds of millions of dollars to get involved in a trillion Doll Market that moves that every single day so that's where the broker business came in that the big markets give liquidity to the Brokers so then you can execute smaller positions as a retail Trader which is what you are watching this video what I am and what pretty much 70% of everybody inside of the market the big banks are the main ones that move the market retail Traders don't do much so this is where the broker is going to give you a fee for executing your trade into the market so picture you over here wanting to enter a trade and then this is Euro USD the trade that you want to enter you simply can't just go from here to the market it's not how it works there has to be a middleman and that is going to be the broker so you have to go to the broker you tell the broker the trade you want to take and then they will execute in into the market so the way that this used to work before used to be based off of phone calls so people would simply get on a phone call broker and be like hey execute this trade for me this is where I want to get out if I'm if I'm wrong this is where I want to get out if I'm right and that's where you would see the Wall Street people pretty much you know running everywhere on the phone with these paper slips because they would have to go to the broker with the slip so they can execute the trade for you well that was like 100 years ago that's not how this works anymore the way this works now is simply through a couple of touches on your phone because obviously that method wasn't being super productive and it wasn't targeting the m masses of retail trading it was a logistical Mission so the way that it is done now is you simply go to a broker you deposit your money into a broker and when you deposit money into the broker you simply find the currency paer that you want to take the trade with and you execute the trade now you're going to see that immediately when you enter the trade you're going to be negative in a position why well it's because the broker business is on a spread in order for them to connect you from the broker to the market that you want to be trading they charge a fee and that fee is going to come immediately as soon as you take a trade simply how the industry works and how the broker business works and the simplest analogy that I can put are like tolls on the highway when you want to get from point A which is your house to let's say point B which is going to be let's say the beach in order for you to get there you have to go through the highway you can't just simply cross from your house to the beach no you have to go through the road and in the road is going to be a toll which you have to pay couple of cents or a dollar obviously depends what country of the world you're in if you even have tolls and this toll is going to charge you a fee so you can get obviously to your location so this is a simple example how to understand what the broker does obviously the toll does nothing for you you have to drive yourself to the like the destination but it's the cost of you having to go to the beach whether you get to the beach or not you still had to pay that toll whether whether you win or not you still have to pay that fee to the broker because they executed you into that trade that you wanted to take now what broker should you use or what broker do I use so I am not going to recommend anybody to any broker um there's 100 million Brokers out there there's 100 million regulations there's 100 different million everything I personally do not want to recommend you to a broker simply because I don't want to have any affiliation towards where you put your money into I don't want to get paid off of a code I don't want none of that stuff and trust me it would be really nice for me to do that because I can easily make hundreds of thousands of dollars a month by referring you to a broker but I rather take the more genuine route and just simply let you do your own due diligence and wherever you decide to go you can go there I make my money trading and I want nothing to do with affiliation to Brokers or to any platform that I simply have no control over especially if they're going to be receiving your money that you're going to be investing into them scale so I'm not going to recommend you to a broker but the simplest things that you should look for a broker is going to be regulation and reputation you don't want to go to a broker that is just getting started and you don't want to go to a broker that is not regulated it is not worth it you want to go to a broker that has regulation so they are at least held liable if something happens I'm sure you've seen the biggest exchanges go down the biggest is Brokers go down imagine how that works for unregulated Brokers those things disappear here in a heartbeat so you want to make sure that you only go to platforms that are regulated and have the best reputation possible but if you were to literally put a gun to my neck if you go like this the only broker I would ever recommend and I'm not getting paid for this at all would be oanda oanda is the most regulated platform pretty much on the face of the earth and the only one regulated in the US kind of sucks because they lower your leverage and they have a lot of you know restrictions because they're a super regulated platform but your money is as safe as it could get there if you want to know more about broker please go do your own due diligence and if you want to then find the broker make sure they have as close as the requirements as this so now that we understand that we understand all the different platforms that you need the platforms that you're going to use the ones that you're not going to use what platforms should you avoid and the platforms that you should avoid are absolutely all of them that are not these four you do not need to look at any other platform that has not to do with these right here because they are simply extra they have overload of information they are unorganized they are excessive and you don't need them to be successful I have tried hundreds of them and they have been a simply waste of time and waste of energy waste of resources waste of money everything you don't need a trading journal right now you don't need a place to track your trades you don't need any of that stuff right now now because you simply don't even know how to trade just yet so how do you know what your tracking is going to work for your benefit or if it's going to work against you so you don't need any of that stuff right now and even to this day I don't journal or track my trades how 99% of the retail traders that lose every single month track their trades I track them in a very different way and I'll also explain that later into this video but there's not going to be any other platform that you will be needing other than these four that I have just explained so you want to avoid every platform outside of these four simply because they're not going to do anything to your trading and make you any more successful if you were to add it to your trading system you do not need it I don't use it and the thousands of my students don't use it either so now that we understand all of that let's talk about the different types of trading because with the information that I have shown you you can trade many different types of ways and I'm not talking about technical ways or stuff with a charart I'm talking about actual trading Concepts there's many of them and these are the most known ones the first one is going to be price action trading which is going to be the charts that I have just shown you guys it's these candlesticks that go up that are blue and red and the candlesticks that go down or the line chart that goes up and down the ones that we just explained in just a couple minutes ago that pretty much represents the feed price of that currency pair happening in side of the markets this is going to be price action this is how you can physically see where price is on real time in front of the chart and everything that happens in the history meaning the candlesticks that are left in the past or the lines that are left in the past this is pretty much like the trail of where this price is headed this is the battle in between both currency Pairs and they're leaving a trail behind when they're going up and when they're going down and those Trails you can use them to your advantage because there's patterns behind those trails and this is the most known common way of trading simply because it's the easiest way to spot patterns because you can literally see them you're seeing it happen again and again and again and you're looking at these patterns through the way of price action price action technical analysis charts it's all the same thing you're looking at the chart which represents price that the market is is showing you in a form of a Candlestick next is going to be Market sentiment so this is a type that I learned very early on and I had extreme failure like this because it's kind of a crazy trading concept and it simply consists of you trading against the majority that's pretty much it and there's websites out there that can tell you where 99% of the retail Traders are and since 99% of the retail Traders fail you simply do the opposite of what they do so if 99% of the retail Traders are buying you will simply sell that's it that's what Market sentiment trading is it's honestly a very highrisk way of trading and there's a lot of speculation because none of these platforms really know how many Traders are in One Direction versus the other it's great assumption and it doesn't work OB they get their price data and live feed from Brokers and from other platforms but how reliable can that really be I tried it and I've heard stories and I've never met anybody that is successful with it but pretty much what you're doing is you're trading against the retail Traders but you're not having an actual price that you are looking at you're not looking at the candlesticks you're not looking at the charts you're not looking at technical you're not looking at any of this stuff you're just basing it off of one platform that tells you hey 99% of the Traders will be buying tomorrow at 9:00 a.m. you should sell but how do you know where to place should take profit how do you know where to place your stop loss how do you know if the entry is right how do you know if you even have an entry signal there's so much stuff that gets factored into this that simply makes absolutely no sense and you're pretty much just trading off of an assumption of a platform which to me had no sense and I see no uh reability and accountability for you to become successful using this Source next is going to be fundamental analysis so this is pretty much what we just explained just a little bit ago on Forex Factory and this is going to be where you simply trade using the news so some people out here they love reading hundreds of pages every single morning or they love being on top of what politicians are doing and they study them and their moves and their team's campaign and based off of what they've done in the past they can pretty much assume what they're going to say in their next speech or what the next political news is going to come out and they use that as a trading strategy to pretty much create an edge over the market where they believe that they can know what these politicians and what these big news are going to pretty much post but it kind of takes as well as a lot of assumption and it's a lot of assumption based off of articles that you have to read that you don't know if some of these articles are reliable you guys know that the media kind of makes a lot of stuff up all the time and give their own twist to the story and I personally didn't want to have any reliability on a social media that they can just spir up the news to make it a little bit more spicy and they could get more attention and may base a money decision based off of that or you simply have to read five six different news articles to pretty much come with one overall decision if it's going to be good if it's going to be bad you're pretty much just basing everything off of reading and instead of you reading actual letters why shouldn't you actually be reading actual charts which is what the market does by you reading fundamentals and you reading the news you're not seeing patterns you're not seeing anything you're just pretty much reading what the people think is going to happen and then you making a business trading decision based off of that and that's what the fundamentals pretty much consist of just you reading news and baiting a base a trading decision off of that so instead of you relying on the charts on the candlesticks you're pretty much relying on the news on politics itions on social media platforms places that direct what the news of that currency is going to be whether you believe it's going to be good or whether you believe it's going to be bad but same exact thing how do you know when's the entry signal how do you base your stop loss off that how do you base your take profit you can't really base it off of something like let's say you even know for a fact that some politician is going to come out and the news article is going to mean that the dollar is going to get strong let's say you know that for a fact you have inside information well what do you with that information how do you know where your take profit is going to be if you're not physically looking at a chart and that's why fundamental Traders usually have a big struggle becoming profitable because they also have to implement technical analysis for it to make some type of sense so these are going to be the three different types of Market approaches that you can decide to trade the market in and for the remainder of this video we are going to Simply and solely only focus on price action trading because it's what I have been using to become successful and it's what 99% of the Traders at the end of the day have to come back and trade because you need to know where you're going to place your entry point your stop loss your take profit so on and so forth and don't worry I'm going to get into a lot more detail on what these terminologies are I just need you to know exactly what we're going to be learning so you can learn these terminologies with the type of trading that we will be doing so now comes the official first step of technical analysis and price action which is going to be Trend and now let let me just say this right now and you guys can literally get a sticky note and write this down the trend is your friend the faster you know this the faster you will become successful and I wish I paid attention to this at the beginning if I would have done this at the beginning it would have saved me so much time so much money because I wanted to be that guy that went against the trend and if you were to just think about this outside of trading when you think the trend is your friend the first that should come to your mind is the ocean current if the ocean current is going east you Simply Swim East if the ocean current is going west you swim West if the current is going west and you want to swim East you're going to have a really hard time if any of you guys have ever been out to the ocean and swam against the current what ends up happening is that you simply don't move you stay in the same exact po you stay in the same exact spot and you have no success well that is exactly what happens with the market but when you go with the currents you make money and when you go against the currents you lose money when you go with the trend you make money when you go against the trend you lose money the trend is your friend this is the number one thing that you need to know and it is the most important thing when it comes to my trading strategy and it just happens to be the first thing that we're going to be talking about when it comes to technical analysis so now how do you identify a trending Market it is very simple as you guys can see if we come over here to the Chart you can identify a trending Market by looking like this you can simply tell this is a market heading to the upside because it is clearly heading to the upside and then you can tell this is a trending Market to the downside because you can clearly see it heading to the downside so this right here is a bullish market and then this is a bearish market this is a bullish market right here and then this is a bearish market so bullish means buys or up bearish means sells or down and this right here is consisted of different types of words that make it a bullish Market or a bearish market and this is going to be higher highs and higher lows so let me just type it in so I need you guys to understand these principal rules right here of ident identifying a trend and this is that a bullish Market is obviously buys and means that the market is heading to the upside and this Market is consisted of higher highs and higher lows which is a short abbreviation is HH Which is higher high and then higher low which is abbreviation for higher low so then a bearish market is obviously for sells and indicating that you're going to the downside and this is consisted of lower lows and lower highs obviously the abbreviation for L is lower low and abbreviation for LH is lower high now I want you to remember it is impossible to have a bullish Market without a higher high and higher low and it is impossible to have a bearish market without lower low and lower highs it is absolutely impossible same way how it is impossible to have a ocean current going east without the waves creating the crevices going east and it is impossible that the ocean current is going west without the ocean crevices going west it is the same exact thing and this is how you identify whether the trend is bullish or whether the trend is bearish now this is going to be very important that you understand this because when you mark off the higher high and higher low which I'm going to show you in just a second you're going to be able to tell when the trend changes from bullish to bearish or from bearish to bullish but the only way for you to be able to identify that is if you can identify the higher highs and higher lows so let's let me explain higher high should be very self-explanatory and that's pretty much going to be the highest high point so that is going to be off of this point right here and we're just going to double click this line we go to text and we simply just type HH inside of this box right here which is going to be the abbreviation short for higher high so we know that this is the higher low and where is the higher low well it's the last higher low which is going to be this point right here so I'm simply going to copy and paste this line we come here and we click and adjust as a higher low now we understand that this Market is bullish because of this higher high and this higher low it is impossible to have a bullish Market without a higher high and a higher low and if we were to have our bearish Market obviously the lower low would be the lowest low point which is this one right here simply double click it come into the box and we're going to put lower low which is the abbreviation for right here and and then for the lower high we're just going to copy and paste this line put it at the last lower high which is at this point right here and we're going to put lower high because it's the last lower high now obviously I'm going to explain now how to identify these points and how it gets a lot simpler but so you have an idea is picture the last move of the market as the last wave before it hits the shore that is where you can start counting the amount of waves that the ocean is showing you within the vision that your eyes can see so if I were to Simply come over here and show you at a picture example so as you guys can see in this image right here the last wave before hitting the shore would be this one right here and you can pretty much count the following waves that are going to be hitting the shore so this is the first wave this is the second wave this is the third and then this is the fourth wave so this wave right here has the highest point of the wave and then it has the highest low point of the wave this is where you can pretty much measure and identify how close the wave is from hitting the short and how close the wave is from the last Wave It's a way for you to tell where's the highest point of the wave and where is the highest low point of the wave obviously in this example of the market going to the upside and then we just simply flip it over vice versa for it heading to the downside so we know that this is the closest wave to hitting to short so when we go back to the charts this is the closest market structure Trend to being at the live price so now that we understand that it is impossible to have a bullish Market without a higher high and higher low and it is impossible to have a bearish market without a lower low and lower high let's just remove this right so we can focus on what matters which is the trend so let's say this Market creates something like this and it does this well this means that this Market has clearly now created a new higher high so we have to adjust our higher high to the new highest high point and then the higher low we have to adjust to the newest higher low point which is going to be this point right here and then this Market can pretty much do this forever as long as it continues to go to the upside and this Market will remain bullish as long as we remain within the higher high and higher low meaning this Market is bullish permanently Forever Until We are above the higher low points the moment we close under this line and the market does this we have now shifted the trend of the market so now this Market is no longer bullish now this Market is bearish there has been a change in the trend there has been a change in the current I'm sure we're all familiar when we've been at the beach sometime the waves are coming to the East and sometimes the waves are going to the west and if you guys have been at the beach long enough if you go early in the morning the waves are going a certain direction because it's getting the overnight current but then towards the afternoon when it comes to Sunset the waves are now going in a completely different direction because the current has changed well this is exactly what happens in the market the market could be going to the upside and then it can change to the downside and the way you can identify the trend shift is by these higher highs and higher lows and this is how you can understand where the trend is going if the trend is going up or if the trend is going down and then this right here will be pretty much the same exact thing when the market is to the downside as long as this Market stays in between the lower high point and it does this this Market will continue heading to the downside and this will turn into the new low lower low and then this will turn into the lower high the moment we close above that lower high this Market has now changed from bearish to then bullish so then this will become the new highest high point and then this will become the new highest low points because the market trend has now shifted and again I'm going to into a lot more detail in this later into the video I want you guys to understand how to spot a trending market now now these trending markets are in absolutely every single pair in the market every single time frame every everything right they come in all different types of shapes and sizes same way as the currents in the ocean whether you see big waves or whether you see little waves whether you're looking at a very small section of the ocean or whether you're looking at the whole entire ocean there is Currents all throughout the ocean there's the overall current from the Pacific Ocean and let's say that can be going west but when you zoom into that section within the Pacific Ocean you can have variations of it going east north south west however the wind is taking it at that point so it just depends on what section you're looking at that will identify what way the current is looking and to explain this now in the trading Market a currency pair Euro USD which is like the Pacific Ocean depending on the time frame you look at it the trend can be going north south east or west or it could be going bullish or bearish right there's no North Southeast or Western trading it's only going to go up or it's only going to go down so it's actually a lot easier to identify if a pair is going up or down then seeing if the ocean what way the current is taking it so now the trend itself is actually consistent of of something called Market structure now Market structure is pretty much like the crevices of the actual wave so if we go back to the image over here you can see that this wave is built because of these crevices and these Bubbles and what creates the wave which is the details of it well it's exact same thing when it comes to the actual trend of the market the market is built off of details and those details are called Market structure and Market structure is what we will be trading and what you're currently looking at is Market structure and Market structure is every single point that looks like an elbow that looks like a triangle looks like a pointy thing however you want to identify every single point that looks like this is consisted of Market structure and as you can tell the market is heading to the upside or heading to the downside because of these Market structur points this is where it identifies where the market has had a rejection from that point whether it's to the upside or whether it's to the downside let's say this market right here decides to then do this that has now created a market structure point this as of right now is not a market structure Point why because it has not created the actual Market structure point this right here here can simply continue heading to the downside and then from here it decides to then do this well now this is a market structure Point not these points in the Middle where there is no elbows where there's no triangles where there's no pointy sections that is not Market structure that is just price action price action is just the price going up or Price going down now when price goes up and when price goes down it leaves a trail and that trail is consisted of Market structure and every single point the market has a reversal point is a market structure Point same thing from here when we are headed to the downside every single one of these points are going to be Market structure not this zone right here in between this is not Market structure this is not Market structure this is not Market structure this is not Market structure this is not Market structure Market structure are these pointy elbows that the market has had a reversal indicating that it is going to continue to the downside or continue to the upside it's wherever the market has had a reaction from is going to be very very key because we're going to be entering trades off of Market structure so if you're tired of me saying Market structure just hit the Subscribe button cuz I think I said it a 100 times and the reason why I said Market structure point so many times is because it's going to lead us to our next point which is going to be support and resistance so now remember support and resistance if you were to think about it having nothing to do with trading what does that mean well if I were to want to push off of this table I'm using this table as support to then go to the upside if I want to pull myself down I will use the bottom of the table as a resistance area to then push myself down so you are using support to push yourself up and you're using resistance to push yourself down well this is exactly what the market does the market uses support points to bounce and head to the upside and then it uses resistance points to reject and then head to the downside if you're buying you're using supports if you're selling you are using resistance resistance is to go down support is to go up if you're going up you're buying if you're going down you're selling and this is very simple because an area of support can be used as resistance and as area of resistance can be used as support just as as how I used this table I use it as support to push myself up and I use it as resistance to pull myself down it is the same area and I use it as support and resistance so if we come to the market now and we were to identify a chart we would come here and we can simply see that a support level would be where the market has had multiple rejections from so this right here would be a level of support because you can see this is a Zone where the market has rejected multiple times from this is a level of supports and then this level right here clearly the market has rejected multiple times and this is a level of resistance now keep in mind it's never going to be perfect right to the te obviously the market moves in Candlestick so you're going to probably have a little bit of margin up Margin down but we'll get into more details there but level of support is where price has rejected from the bottom to P itself up and then resistance or where price has reached the roof and has used it to push itself down so for example if price were to be here right now it would use it to then push itself down and if it were to come to this point it would use this point as support to then push itself up so this is a classic level of support and resistance and this is extremely important that you understand what is a resistance level and what is a support level because we are going to be entering our trades off of a support or off of a resistance level as if I were to have to push myself up I would need something in order to push myself up I can't just push myself up out of thin air I'm not Superman I don't have those Powers yet I need a platform to push myself up so I need to identify the platform that could withstand my weight to push myself up if you're looking to buy a trade you need to identify a strong level of supports that is going to withstand the market and push your trade to the upside where you're looking to buy where you would make money and this leads me to my next point which is going to be area of Interest or also known as a level of supply and demand as you can just see I've identified this table as an area of Interest where I want to use it to push myself up or pull myself down this is my area of Interest what I'm going to be using now this is exactly the same thing that you will be looking at the markets when you're looking to buy or when you're looking to sell an area of interest is an area that you want to identify strongly to go up or strongly to go down so if I were to show you right here when we come back to the charts you can see that if I were to be having this spot right here price having a pullback I would identify this as an area of interest because every single time we come to the Zone we are ejecting and we're going to the upside so I would place a buy here and if the next time we come to this point right here I would use this as an area of interest because we have clearly rejected it multiple times where I'd be interested in selling it to the downside now the only way you can identify an area of interest is if you have a minimum of three Market structure rejections so this right here is a perfect example of an area of interest because we have more than three three Market structure rejections as you can see this right here is a market structure this right here is a market structure and then this right here is a market structure so if we were to come back into this point this is a valid area of Interest same thing if we were to come here as resistance this would be a valid area of interest because we have more than three touches from this level of resistance which would be qualified as our area of Interest so an area of Interest has to have more than three touches to be a valid area of Interest a minimum of three anything above three is obviously better the more the better because it means that it is more respected so when you're going to use this as an air of interest it's going to work to your advantage a lot better so you want to make sure that you're using the current price as an air of Interest so for example let's say if you were to have the chart like this and if you were to only have these two and you would not have this and you wouldn't have any of these you cannot use this as an area of interest because it only has two touches it does not have three touches this is a touch as a support level but since you are at a resistance level you're interested in selling so you need three touches of the resistance level to then enter the trade you can't use a level of support to add has three touches that simply just makes no sense you want to make sure you have three touches of the resistance level in order to take the trade if you don't have three rejections previously you simply don't have a valid area of Interest even where Price is Right Now is not considered a rejection because we don't know if this has rejected it we're looking to enter the trade before it does so if this were to do this this is a valid area of Interest now because this is the third Tas so this is what an area of Interest SL supply and demand consists of it consists of an area that has more than three touches of Market structure next is going to be round psychological level so make sure you guys pay attention because this is actually the easiest one and it's the most straight to the point one when you think round psychological level the first thing that should come up is a round number so every round number is going to be every 100 200 300 400 500 600 it's every round number to every H hundredth so this is exactly what we look for in the charts because the markets have reactions from these round psychological levels think about it let's say you were to be a institutional Bank where you are moving trillions of dollars every single day do you think that you would decide to liquidate your positions at a random price point on the chart let's say 1.53 21 now that's not ideal you want to liquidate your positions at a round psychological level so your all your positions are closed equally and you have everything organized so you would close your position at 1.5000 that is a round psychological level or you would close it at 1.55 something that is a round level and that all the positions can get liquidated at the same exact points and you can keep it on your books and you don't have just a random number out there on the charts so round psychological level on the charts are actually very easy to identify all you have to do is get your horizontal line and you can simply just throw it wherever in the chart and you double click it and you will go to coordinates and when you are in coordinates you simply round it to any hundred so for example this is 17712 you want to round this off to 17710 zero so you would round it off to the 100th and you would simply click okay and you can see how now it pops up on your chart as an identified round psychological level you can come here throw it another again randomly into the charts you would go to coordinates and you can see here how we have 17685 so you would erase the five you would put a zero now you have a round psychological level 1.78 100 and you can pretty much just do this on every hundred it's very simple it's almost kind of fun 1.76 353 so you want to round this to the 100 so obviously this is above the 50 Mark so you were to round this off to the 400 or if you want to round it off to the 300 or because where you placed it it was above 50 you can then round it off to the 400 the point is that you need to have it closed at a round psychological level it is every round number you don't want to have a bunch of random numbers you want to keep everything very clean very straight to the point so now that we understand round psychological level the next subject is going to be the Japanese candlesticks so Japanese candlesticks is what we have been looking at in the charts there are these candlesticks these boxes that they're blue or green when going up and red when going down this is very important because these are the candlesticks that we will be trading when you're looking at Price action when you're looking at the market Trend everything is going to be based off of these candlesticks so it's very key and very important that you pay attention to how these candlesticks work so let me explain to you how these candlesticks work because these are the candlesticks that leave the trail on the charts that leave the footprints leave the patterns this is everything that we will be basing our trading strategy on and how you're going to to execute trades on the market based off of these candlesticks when you have these candlesticks all accumulated and they create a trading strategy so if we look at this image right here this is what a Candlestick consists of Candlestick consists of a high point consists of a close point an open point and a low point for a bullish candle and then a high point an open point a close point and a low point for a bearish candle so every single candle has to open and then it has to close and every single Candlestick has a high and has a low or a low and then a high it's the same exact thing just one is bullish and one is bearish so as you guys can see right here this green box is called the actual Candlestick this is where price opened and this this is where price closed now this can be the 1eh hour the daily the weekly this Candlestick that we are looking at can be in absolutely any time frame because every single Candlestick is the same the only thing that changes is the actual time frame but what the Candlestick consists of is the same for every single different time frame and we just discussed the time frames earlier in this video so this high price is the Trail of where price was so this candle stick well this box was actually up here at one point and then price was pulled back and that Wick is the Trail of where the price was so this is where price had pushed up to and then price came back and it closed at this point so as well from this point when price opened price actually pushed to the downside but then the buyers came into the market and then pushed the price to the upside but this is where the price closed leaving a wick on the bottom and a wick on the top the wick is pretty much a different term as used for Trail because let's say that I were to be at the beach and I were to get a stick and I simply move the stick up on the sand and then I move it down you guys can see that there is a trail that I left with the stick but where I last leave the stick that's where the stick stays well that's when price opens it goes up it leaves a trail and when price goes down it leaves a trail as well and where the price last closes well that's where price stays so these Wicks on on the high or on the low is the trail that the actual Candlestick has done within that hour of whatever time frame you are looking at so let me actually just show you in the charts right now so this Candlestick right here which is the last Candlestick this Candlestick had opened at this point right here and then price had been pulled down just a little bit and then price was pulled pushed all the way up to the upside to the high of that Wick then a little bit of sellers came and then this is exactly where price has then closed so when the next Candlestick opens it is going to open like this it's going to open where this price was closed at last and I say as soon as it opens it decides to go to the upside but then it decides that the sellers are stronger and it's going to push down it simply can't just like like this because the price actually pushed up so it's going to leave a wick at this point right here and this is where the price was at so if price pulled pushed all the way up to this point and then it pulled back down over here then that is the trail that this price leaves and if this keeps pushing down to let's say this point and this is the lowest point this Candlestick made but then it decided to pull all the way back up to here well it's going to leave a trail which is the wick that the price made it to that low point when it was fluctuating so this Candlestick would have done all of this within the daily time frame meaning it decided to move up all the way to this point low all the way to this point and then close at this point within 24 hours of this Candlestick and then let's say the next one it opens where this one closed so if this one closed at this point then the next one will open here and let's say it goes a little bit to the upside so then this would be the highest point that was and then let's say it just decides to push down it would leave a little tail right here and then we will continue to then head to the downside and let's say it goes all the way up to this low point and it decides to have a little bit of a pullback to let's say that point right there well then this would only have a wick this size like right there and then if the next Candlestick opens where it closed if it closed here and then it heads to the upside but first a little bit like this well then it would leave a little bit of a wick to the downside at this point point right here and then if it closes to the upside let's say it went all the way up to this High that's the highest point that Candlestick made and then it decides to have a pullback to this point well then it will leave a wick right here which is going to be the trail that that Candlestick has left so basically when a Candlestick opens it's going to push up or down and wherever it decides to go it's going to leave a trail which is going to be the wick so now that you understand how the candlesticks work when they open open and when they close and the trail that they leave it leads me to my next point which is going to be Candlestick patterns so this is where you have a mix of the actual candlesticks and then price action where they create a pattern in the markets these patterns are used as continuation patterns they're used as reversal patterns when you're taking a trade you're going to add this as a confirmation or another reason to take a trade because you're seeing this pattern happen time and time again and these patterns will identify if it is a trade continuation pattern or if it is a reversal pattern a trend continuation pattern is pretty much what it says in its name it's a pattern to indicate to you that the trend will continue to go in its favor and then you have a reversal pattern which is a pattern that it's going to indicate to that the market is now going to reverse whether you have a market at a high that is going to indicate to you that now the market is going to reverse to the the downside or a pattern at the bottom that it is going to indicate to that the market is going to now reverse to the upside or if you have a trend continuation pattern it's a pattern that if the trend is going up it's a pattern that will indicate to you that it will continue to going up or if you have a trend continuation pattern to the downside it's a pattern that's going to indicate to you that the trend is going to continue going to the downside and this is very important because if you're looking to trade with the trend you want to trade with the continuation pattern and if you're looking to trade against Trend which I don't ever recommend you're going to use the reversal pattern or if you see this pattern you know not to take a trade if you're trading with the trend for example let me show you the most effective and my favorite reversal pattern in all of the market and you'll see how often you can actually see it in the charts and it is going to be the head and shoulders pattern so as you guys can see right here this pretty much looks like a head and shoulders or three Peak Mountain whatever you want to call it the actual proper terminology is Head and Shoulders as you can see right here this is a left shoulder this is a head and then this is a right shoulder and if you can see all of this is an accumulation of both of the important things that I have taught you one market structure and two Candlestick patterns so as you can see right here this peak this elbow this pointy point this triangle this is a market structure point this is a market structure points this is a market structure Market structure Market structure and as you can tell this Market structure created with the candlesticks has created a head and shoulders pattern so if you see a head and shoulders pattern at the top of a trend this is a reversal pattern this is going to indicate to you that now the market is going to head to the downside so the market is no longer bullish if you see The Head and Shoulders at a resistance point and at a high point in the market this is an indication that the market is now going to reverse so if you were looking to enter buys you should no longer enter buys because you're having a reversal pattern and then this brother or it sister is going to be the inverted Head and Shoulders which is literally the same exact thing just opposite so an inverted Head and Shoulder happens at the bottom of a trend where you will have the same exact left head and then right shoulder this is where it's consisted of Market structure Market structure Market structure Market structure and Market structure with the candlesticks that I have just explained to you and it creates an inverted Head and Shoulders which happens at the bottom of the trend and as you can see when the formation happens the market now heads to the upside because this is is a reversal pattern and it's very important for you to understand these patterns because they happen time and time again again in the market and this is a way of you creating an edge because you're seeing the same thing happen time and time and time again so you use that to your advantage imagine if you were to be a surfer and every single time you were on the beach and you were about to Surf a wave you would see a certain type of wave come from a distance and it would have a certain crevice at a certain speed and a certain height and every single time that happens you ride a beautiful wave all the way to short so when you see this happen time and time time again you know to get ready to be out there in the water and for you to be able to take your wave all the way to short this is an indication that you're going to have a great wave this is the same exact thing this is a great indication you're going to have a great trade because the pattern happens time and time again in the market and these patterns happen on all different time frames they can happen on the higher time frames they can happen on the lower time frames just keep in mind the lower time frames is not going to be as respected as the higher time frames same same way as sureno wave if you have a little wave you're not going to get that far versus if you have a bigger wave the bigger the wave the longer the ride the shorter the wave the smaller the right so the smaller the time frame the less respected it is the higher the time frame the more respected it is now I have a video where I actually explain all of the patterns that I use every single day when I trade and I to actually enter a trade at this head and shoulders pattern at a reversal pattern so you can use it to your advantage so make sure you click this video right here and you learn from the actual pattern so you can take an advantage and go into a little bit more detail on how they're used and how I've been using them for the last 6 years yeah and like as you guys can see that right there is literally a head and shoulders pattern right there literally a head and shoulders right there and you can see how that happened at the high of a market and it was a reversal pattern heading to the outside and that also stays right there to hit the Subscribe button subscribe why why you're look you're this far into the video and you're going to not subscribe really really so now that we understand that our next topic is going to be indicators so a lot of Traders have a fantasy indicator 100% win weight indicator that will indicates you when to enter the trade when to get out it's going to do all the work for you blah blah blah blah blah blah blah blah this does not work an indicator is simply an indication it's never going to give you a 100% guarantee that the trade is going to go in One Direction versus the other it's almost like the weatherman at the news they can give you they have an indication that it can possibly rain at noon and it might be partially cloudy but it's never 100% sometimes it works sometimes it doesn't but they have an indication based off of Science and the research that gives them the forecast of what will be happening with the weather what's the exact same thing with an indicator an indicator gets all of this data from the price and then it will give you a forecast whether it's going to go up or it's going to go down depending on how you use it so an indicator is simply something that is going to give you an indication whether it's going to go in your favor or it's not going to go in your favor it's just going to give you an indication of where the market is going so keep in mind the more indicators does not mean the more probability your trade's going to win if anything the more indicator means the more complicated you're getting your trade in because you're putting more things into the charts than you actually need you don't need to have a bunch of different indicators telling you if the Market's going to go up or if the market is going to go down simply just need one that works because one indicator can be predicting long-term market movement while another one can be predicting short-term market movement same way as the forecast with the weatherman some indicators can be predicting if it's going to rain all of Summer and then some of the indicators can predict if it's going to rain tomorrow so so you don't want to accumulate all of these different indicators to decide if you're going to go to the beach on the weekend you want to make sure that you're focusing on what matters and it's what's happening right now so getting over here to the charts and these are the most standard indicators so an indicator when you see it on the charts it's basically a dynamic level of support and resistance that's the market creates based off of the market movement it's going to be moving with the market simultaneously when it's going up and it's going to move simultaneously where the market is going down wherever the market goes this will simply follow it with a space in between because it's going to give you an indication if it's going to continue going down or if it's going to continue going up a lot of Traders use the indicator whenever it's above to buy or whenever it's under to sell but it's not that easy it actually goes into a lot more detail than that so as you guys can see in this image right here this is how you don't want to look with your trading indicators people go absolutely nuts thinking the more indicators that they have the more money they're going to make and as you can see right here you can't even see the actual price you can't see the candlesticks you can't see anything because you have so many indicators in between price that you can't even focus on what's going on so you do not want to have your chart full of all these indicators and now I can go on for hours about indicators and how all of them work but the reality of the situation is that they all do the same thing they just give you an indication if it's going to go up or go down now there's no Holy Grail of indicator that works there's only one that I have tested and I've tested thousands of these there's only one that works everything that you see with these other indicators they will probably have the same exact win rate or loss rate or they give you the same exact Edge but they're just so much more complicated to learn and they are simply waste of time I wish that I would have learned this at the beginning cuz I would have saved myself endless hours of applying these indicators back testing live testing when it did absolutely nothing because literally this is like having the Forex Factory that will indicate to you the news you can read as many news as you want you can literally be a PO you you can literally be right there as soon as the news come out but you will still not be able to use it to your advantage because you don't know what's going to happen in the news it's the same exact thing with this you can have as many indic IND Ator is the best one but it simply will never give you exactly what you need the simpler the better now many of these indicators can be like EMA which is short for exponential moving average it's just a moving average that goes exponentially with the price it's very self-explanatory next is the RSI so RSI will indicates you when the market is overbought or when the market is oversold basically indicating to you that if the market is oversold it's a great time to buy or if the market is overbought it's a great time to then sell because it price is too high or price is too low which we all know that the market can never be too high and it can never be too low so the RSI indicates to you that it's too high or that it's too low obviously that doesn't work well and we also have Binger bands Binger bands is pretty much bands that trap price as it goes up and trap price as it goes down and whenever the price hits the top of the Binger band you should sell and whenever price hits the bottom of the b rer band you should buy as well it's very delayed process it doesn't work and it just simply makes your mark your chart look very ugly so to summarize you don't need any of these they're very excessive they're delayed they don't work and they simply complicate your trading an indicator is cool but it's not the holy girl so stop getting shiny object syndrome and getting clickbaited into one of these videos saying that they have the best indicator I am here to tell you that you do not need that to succeed and it will simply not work I have tested it out I have done as many research as I can I've even tried to automate this and put money behind the research on a proper indicator and it simply doesn't work the next topic that I want to get into is going to be Fibonacci retracements now disclaim Climer I do not use Fibonacci I have not used it since I begin my trading journey and I have not used it at all to become successful I just feel like it's good for you to know what it is so when you hear about it you're educated but I want you to know that you do not need this to succeed and you do not need this to make money in the markets this is the same thing as a indicator it is very delayed it's very fugazy and it does not work and you will have no use for it but think it is important that you should know what it is so you're just simply aware of it so Fibonacci itself actually goes back many many years and it is a mathematical equation where it's a sequence of multiple numbers getting added up where you can pretty much predict certain movements in the future it goes into a very spiritual depth and some Traders created that mathematical equation and then created a tool which is the Fibonacci retracement and the Fibonacci retracement pretty much indicates to you how far back the price can then pull back to then head in a certain direction now this is extremely subjective because you can throw the Fibonacci tool many different ways and there's not a certain way you should fck and it's not a certain Fibonacci number that you only take the trade in they put many different zones to take a trade so it is extremely subjective and I personally have no use for it and it makes absolutely no sense let me let me explain so as you guys can see see right here this is a Fibonacci retracement so this is a bullish Market heading to the upside and then we are expecting for price to have a retracement to then go to the upside as you can see right here this is the beginning of the Fibonacci and then this is the ending of the Fibonacci this is the retracement that we are anticipating for the Fibonacci to happen to either the 50 the 32.8 or the 23.6 and then we will then have the push to then the 1.68 into the 161 into the 161.8% come in you can anticipate the pullback to come here and then go to the upside go to the second Zone and head to the upside or go to the third Zone and head to the upside so how do you know if you should enter the trade here here or here so they pretty much set three different zones for you to enter the trade it just simply doesn't make sense Fibonacci retracement is pretty much when price is having a pullback you just simply add the Fibonacci to add a Confluence but it makes absolutely no sense and all of these numbers they come automatic when you go to trading view so so if we come here to trading View and if we were to come over here to the actual pattern section you can see how we're going to have a Fibonacci retracement so right here you see fib retracement and you can start it from this point all the way up to this point and this would be an interested for a buy so as you can see we would pretty much have this area right here we have a Fibonacci retracement and then this is what we would anticipate simply makes absolutely no sense and it will be absolutely no use for this ever if I were to show you an example of how they use the Fibonacci they would simply grab this tool and I almost have like cringing like using this right now CU I haven't used this in so many years but I'm just literally doing this for you guys so you guys can understand so they would throw it from the wick point right here and then they would drag it all the way up to the high of this Wick right here so I'm just going to move it to the right so you can see the numbers they would to say okay yeah this had a Fibonacci retracement to the 50% and then it head to the upside and you can see it hit the take profit perfectly at the - 27 makes absolutely no sense in my opinion like I I I I can't believe I just did that that goes against my whole trading philosophy I do not watch this spe I hate this that I'm explaining this I'm just doing it for you guys so you guys are educated and you guys don't waste any time I wasted a whole year and a half trying to figure out how I was going to to become a mathematical genius using this it did nothing for me and what I just showed you you guys was a winning example everything will work with a winning example I can show you all the EMAs that work after it already happened but in real life trading this doesn't work now moving on to the next topic and that is going to be back testing so back testing is very commonly used as beginner Traders because you want to back test that your strategy or your theory works it's pretty much a freebie to see if you can make money with this in the future so you're using the previous price data to see if you can make money with the future price data based off of what you back tested in the past and this is because history tends to repeat itself very often in trading and not only in trading but pretty much in life as a whole like we back test every single day without even noticing as simple as when we go through traffic every single day if we know yesterday there is a certain section when you're going to work or when you're going home that the road is closed well you back tested that yesterday so now when you're going to do it in the future you're going to go around that area to somewhere else for example it's when you want to go somewhere and it's traffic hour you know not to go somewhere at a certain time or you simply can't go somewhere at a certain time because there's traffic how do you know there's traffic because you've back tested it you've gone through the live market you've been through the traffic so you know that if you want want to go somewhere when it's rush hour it's going to take you a really long time and it's going to be a waste of time so what do you do you set yourself up for success by knowing when the traffic is going to happen you then only go do things when there is no traffic so the same thing happens in back testing the traits you back test what is going to happen and then you use that to your advantage so when you are looking for something you know exactly what to look for in the future because you have just back tested it so the way you do back testing in trading view is actually very simple so you would come here and you would click this replay button so as soon as you would click the replay button this blue line would pretty much pop up on your screen that you can go back pretty much as far as you want and you can cut price off wherever as you can see there's scissors right here and if I were to click it the section that is in the lighter color would disappear and then the section that is in the uh darker color would then stay because this is the section where we would start the back testing from so let's say I would click from this point right here I would click it and now I have erased all of the price that has just happened so to's say I want to put to test certain type of candlesticks certain types of patterns and rejections I would pretty much build my trading plan based off of that and then I would simply click play on exactly what would happen so let's say right here I would anticipate a break and then a retest pattern to head to the upside then I would use that to my advantage so so I can see if this pattern will then happen I see a break I see a retest previous structure points round pychological level and then you would play and then the trade would play out this is how you can see the patterns happen time and time and time again now I personally do not recommend back testing at all simply because I think it is a very easy way to create an illusion of how fast the trade can play out because if you just notice what we just went through right now if I were to use the measuring tool we just went through 11 to 12 days worth of price in literally 2 seconds and the psychology of a Trader that has to hold a trade for 12 days is not going to be the same psychology of a Trader that just back tested for two seconds a Trader that just back tested for two seconds and the trade P it out that fast is going to think that that is exactly how it's going to happen in the live market and that is not how it's going to happen you have to wait 12 days meaning it's almost 2 weeks from the moment you take the trade and that requires extreme amount of patience and back testing to me is pretty much damaging your self-confidence and damaging your psychology even though it's supposed to make it better but what you're doing is you're creating an illusion of how the market should play out in terms of speed because you're you're seeing how the market is going to play out in terms of technical analysis and that is cool but when it comes to speed that is what Traders struggle with the most waiting for things to happen faster than they should have and that is because trading is 80% psychological and 20% technical I even now that's the stat that the big institutions say I think it's almost 95% psychological and 5% technical because when you learn how to read the charts it's like learning how to read a language now the actual challenge comes when you go to speak this language to somebody else how confident are you if you just learned the new language that you can go speak with it fluently when you go on a date with a person all of that is psychological because you don't want to obviously look like a fool if you're going on a date with a pretty lady and it's your first time speaking Japanese you want to make sure you can speak Japanese to the best of your capability so this happens the same exact thing here you can learn how to read the candlesticks but then your Psych is not ready to then wait 12 days for a trade to then play out if you're a beginner Trader this won't make sense just yet but as you continue your path as a Trader you're going to remember this that I'm telling you right now so now that we understand let's move on to the next topic which is going to be more handson it's going to be the section that I want to call how to actually take a trade or the principles that you need to know and understand to actually take a trade in the markets when you're trading any single pair here so there's multiple things that you need to know before entering a trade and even realizing is it time to enter trade where are what's going on right so the first things first that you need to know is how to measure your trade and measuring a trade is measured by Pips so I'm sure you've heard me say this word uh you know many times throughout this whole video and you're probably wondering what the hell is this word pip and for some reason a lot of Traders just get confused at this word pip right it sounds like it's something small and it actually is PIP is the points in percentage on how you are going to measure the currency pair when it goes up or when it goes down so pip is an abbreviation for points in percentage this is basically how you're going to measure the points in percentage if the currency is going up or if the currency is going down it's like saying units or it's like saying cents like let's say the dollar is trading at 1501 and it goes 1508 it's just went up seven points seven Pips seven units all the same thing well not the same thing but it's all different type of measurements but the way we measure is by Pips if a car were to move forward several feet let's say 100 ft it is measured by feet but it just moved forward you can measure it in feet and inches yards miles doesn't matter it's just a different type of measurement pip is simply a different type of measurement that we'll be using to calculate our stop- loss to calculate how much a trade has gone up or down and it is the most common terminology used to measure how far a trade has gone up and how far the trade has gone down and how to just measure the market as a whole so now let me actually show you in the chart how you can actually measure with pips right so if we come over here to the trading view uh this tool that we have spoken about before which which is under the smiley face you were to click this tool and as you can see it is the measurement tool as soon as you click it it's going to highlight and you're going to get the Crosshair to have the star on it so then here you can just click it and you can drag it to the left and you can drag it to the right you can drag it up and you can drag it down so for example if we were to drag this to the upside as you can see right here this number to the top right corner is going to move when we go up and when we go down so as you can see as we're going up it's going up and as we go down it's going to go down negative as you can see here now it's 69 if we go from here and we go up it's positive 72 this is the amount of Pips that this Market has moved this Market has moved 72 Pips obviously if we were to measure it like this and if we were to do it to the the downside this Market has measured 70 Pips to the downside that's literally it so for example if we were to want to measure the size of this red Candlestick right here simply just do a box around it and this whole entire Candlestick is 45 Pips 45 Pips to the downside clearly because this Candlestick is to the downside if we want to measure this Candlestick to the upside we can measure it right here and then this would be a 29.7 p PS to the upside Pips is just a different way on how to measure the size of the market and it's mainly going to be used for the next topic that I'm going to be talking about which is going to be stop loss and take profit so for example in this trade that I just took about a week ago I'm going to show you how I measured the Pips on this trade for my stop- loss and how I measured the Pips for the takeprofit on this trade so if I were to just simply zoom in right here onto this trade I actually uted this trade at this point right here and my stop loss as you can see was 15.8 Pips meaning that this was where if I was wrong the market would have taken me out and my take profit was 40.9 Pips meaning this is where I want to get taken out of the trade when I am right and this I measured it using Pips very simple very straight to the point and you're probably wondering why why 40 Pips and why 15.8 like is this a specific number and the answer is actually no there actually a way on how you should place a stop loss and how you should place a take profit and I'll explain this in just a second right so now that we understand what is a pip let me actually just show you how you can use this to measure your stop loss and measure your take profit and how to actually calculate how much you're going to risk on your trade so we're going to discuss all three pretty much at the same time because as you're entering a trade all these things are kind of happening at the same time more or less so if we were to just bring up a empty chart right here you guys can see this Market is creating higher highs and higher lows this is a bullish market and let's pretend like we are interested in buying this trade at this point right here because this is a level of resistance that we are now potentially going to use as support when we are going to enter the trade we have to have our stop loss always about 5 to 10 Pips up under the area of Interest make sure you write this down because this is extremely key to having a proper stop loss and not getting Wicked out or Faked out which all of the stuff I'm going to discuss in just a second but just write this down your stop loss has to be 5 to 10 Pips within the area of Interest let me show you so if we were to enter this trade at this point right here let's say the market is already having some sort of a rejection from this point we were to enter at this point our our stop loss has to be under the area of Interest by 5 to 10 Pips so if this right here is the bottom of the area of Interest we have to measure 5 to 10 Pips from this point right here so this is where we would bring out our measuring tool and then we would measure 5 to 10 Pips so this right here would be five Pips you can see right here it's Min - 5 Pips so we can put a line right there and then if we were to measure 10 Pips tips it would be right around this point right here this would be our 10 pip point so when we were to take this trade we would ask ourselves is it more ideal for our stop loss to be five Pips from the area of Interest or 10 Pips from our area of interest and if you notice really doesn't make a difference from 5 to 10 because we have still plenty of breathing room so for this trade for example I would have it five Pips under the area of interest from wherever I took the trade so this is where I would have my stop loss on this trade and for the take profit we have to have the take profit be at the next structure point so as you can see this right here is the next structure point where we can simply have a rejection from because it's the closest point where there is a resistance level or support level the take profit is actually the easiest to put because it's just the first point where Market if it were to have the push to the upside just the first point that it can have a rejection because remember the market could come into this area right here and have a type of rejection and then have a reversal to the downside if I were to show you this example to the downside it's literally exactly the same and you can see that this is a bearish market heading to the downside and if we were to be interested in selling at this area of Interest we would have this area of Interest right here and the market is at that point now we would place our stop-loss entry I mean our sell entry and if this Market would already have a rejection from this area this is where we would have to measure 5 to 10 Pips above the area of Interest so this is the area of interest and it is at two Pips we would have to add five Pips meaning it would be seven which would be at this point right here or if you were to add another five it would have to be about 13 Pips which would be this point right around here and then our take profit would have to be at the closest structure point which for this example let's just make it like this and then this would be our structure point right there as our take profit so it's very very simple because you're measuring your stop loss with pips and you're just making sure that you have a five to 10 pip breathing room above your area of interest if you're selling and about 5 to 10 Pips under your area of interest if you are buying and you're probably wondering when is it the right time to pick five and when is it the right time to pick 10 well simply because let's say for example on this trade if we were to have an entry let's say right around up here and we were to have a late entry quote unquote we would want to make sure that you know we would have a five pip Breathing Room simply because we would want the risk to reward to make sense so this leads me to my next point which is going to be risk to reward and this is that you want to have a minimum a minimum as a beginner Trader a one to2 risk to reward so let's say you are risking $1 you're going to make $2 for every $1 you risk because if out of 10 trades you lose half of them literally you are profitable with these five winning trades because all you need is three of these trades to make back all of your losses and then you have two trades that are purely winners so if you have a a 5050 win rate meaning out of 10 trades you lose five it's minus5 but then out of these five you win $10 you just outweighed your losses so you just made back the $5 you lost and now you just made an extra $5 by simply having a 50% win rate but a one to2 risk reward this is the key to success in trading and when I figured this out absolutely everything changed for me because I realized that I was predicting the market and I was knowing where the trades were going but I just didn't have the right risk reward and even if you win 80% of the time and you don't have the right risk to reward you will not be successful you need to have the right risk to reward so your wins outweigh your losses and the best way to do this is by using Pips to calculate your risk reward so if you come back over here we would notice that our stop loss if we were to have it 10 Pips under our risk to reward ratio as you can see right here is not a 1 to2 we want to make sure that our risk reward ratio looks something like this want to make sure that see this right here is not ideal we want to make sure it has a one to two risk reward so for the $1 that we risk we make back $2 so in this case we'd be making back $210 which is the ideal risk to reward to start as a beginner Trader and as time goes obviously you can scale and the more risk reward the better so now that we understand that we need a positive risk reward and we understand that our stop loss has to be 5 to 10 Pips under the area of interest and our take profit has to be at a structure point this right here is our perfect uh risk reward trade that we would want to take right this is a trade that makes sense to us because a trade that makes sense not only does it have to be a high probability trade setup it simply has to make sense MoneyWise is it worth it to put money at risk here yes or no that's simply all this has to come down and you can have all of the confluences in the world all the confirmations but if the risk to reward at the end of the day does not make sense the trade does not make sense simply because you are risking more than you are going to gain that is why you need to have a minimum of a 1 to2 risk to reward ratio so now that you're ready to enter the trade you need to calculate how much are you going to place on this trade what are you going to risk so for example this trade we would here go to my effects book calculator and we are currently trading Euro GBP you can see Euro GBP up here Euro GBP so we're trading the Euro with the Great British pound so we'd come over here to the position size calculator we would search up Ur e GBP which is Euro GBP we are going to have our account currency be USD cuz I'm currently in the US and let's say for example we have a $110,000 account now what percentage out of this account do you want to risk everybody has a different risk tolerance I always recommend beginner traders to risk no more than 2% because if you think about it if you risk 1% you literally have to lose a 100 times in a row before you build that account and let's be honest it's kind of impossible to lose 100 times in a row if you risk 2% you have to lose 50 times in a row if you risk 3% now you're at about 20 to 30 times in a row because of spread so on and so forth which I'll get into that in just a second so the more you risk the more you are prone to blowing your account even faster so the max I recommend is 2% because the odds of you losing 50 trades in a row is not likely and even if you win or lose you'll be break even at the end of the day because you're using proper risk management now I know it sucks if you have a $100 account or a $500 account or a $1,000 account I know trust me I've been there literally I was working at Dunkin' donuts and I was depositing $200 into my draining account and that sucked but once you learn how to manage percentage wise on these smaller accounts then you can take that strategy and that knowledge and go get funded which I'll explain that as well later in this video so let's just say for this example we want to risk 2% on this account as you can see right here we are risking 2% of our $110,000 account and our stop loss well how many Pips is our stop loss well let's go find out we come back here to eurogbp we click on this tool right here and as you can see we have a 9.5 Pips you can round that off to about 10 Pips so if we come here and we move it down we have just rounded it off to then 10 Pips we come to the position size calculator you click 10 and then the trade slow Fu and the trade size lot you will always leave at one you simply click calculate and then it's going to exactly tell you how much you're risking on your GBP with 2% on a 10 pip stoploss and that is going to be $200 this is your unit size and then this is going to be your lot size so the lot size is actually going to be the actual number you're going to plug in to the metat trader 4 or metat Trader 5 when you're executing the trade and we're going to be actually executing a trade together later in this video to make sure you stick around so I can show you pretty much all of this getting pieced together I want to do one thing at a time so you can understand everything because if I kind of say everything at the same time it can be very overwhelming so I want you to understand everything that you need in order to enter a trade then after we will enter a trade together and for those of you guys that are wondering what is a lot size well basically the lot size is the number that you have to put into metatrader 4 metat Trader 5 that calculates how much money you're risking of your account because you can't go into metatrader 4 metat Trader 5 and simply put I want to risk $200 well you can't can't just plug that in like that there's a mathematical equation based off of your amount of Pips and the percentage that you want to risk that comes out with a numerical number which is this lot size so it can sound complicated but this platform makes it very easy if you have a 10K account and you want to risk $200 well it calculates to you the lot size that you have to put it's just simply a requirement that the platform needs in order for it to calculate how much you're risking on your account so it will do the math for you pretty much so now that we understand what is a pip which is a way on how to measure the market now that we understand what is a take profit what is a stop loss which it's pretty much straightforward takeprofit is where you want to take your profit and then a stop- loss is where you want to stop your losses if you're in the losses and now that we understand risk to reward ratio which is as well very self-explanatory it's your risk versus your reward you want to make sure that your ratio is always a 1 to two now let's talk about what are the proper time frames that you should be doing this on right which is also called topd down analysis so let me explain so the market is done with a top down analysis meaning you start from the top and then you make your way down this is where you're going to go from the higher time frames to the lower time frames to do your analysis it's called top down analysis the simplest way that I can put this is when you wake up in the morning you are going to dress yourself from the top down you pretty much brush your hair put on your contacts your glasses put on a shirt put on your underwear your pants your socks your shoes start from the top all the way down now some of you guys probably don't do it this way I don't do it this way either but it's just the simplest example that I can put for you guys to understand how you're going to go from the top to the bottom and then this is where we would be starting our top down analysis from the weekly time frame so we would start analyzing the market on the weekly time frame then we would go down to the Daily time frame then we would go down to the 4 Hour 2 Hour 1 hour 30 minute 15 minute simply are just going to be going from time frame to time frame lower every single time because every single time we go lower into the time frames we get more specific and we get more Niche down and more detailed picture it almost as if you were to be looking through a telescope scope and every single time you zoom in you're seeing more details on whatever insects or whatever micro that you're looking at through the telescope the more zoomed in you get the more details you see on it well it's the exact same thing in the markets the lower time frame you go the more details you see on what the market is doing so when you're looking through this telescope to your insects or the micros that you're looking at you want to base your analysis and you want to base your research on this insect or this micro that you are currently inspecting the more detailed you can get the detailed that you can get into it the more you can explain so if you were to go to the lowest telescope meaning that you can see the most detail in it you can tell whether it's alive you can tell how many organisms are inside of it blah blah blah blah blah now that would pretty much confirm what you're looking at and you can write it down and you can use that for your research well this would be the exact same thing well confirm your research and this would let you know what to C [ __ ] this would let you know what to categorize this insect or this micro s well it's the exact same thing in the markets the lower time frame you go the more detailed you're going to get the more you can identify your entry signal and what you are looking for in order to actually execute into this trade and you can categorize it as a great trade or you can categorize it as a bad trade but you know this because you are looking down the time frames and you're looking at the best ones and then that leads me to the next point which is going to be the famous entry signal which is going to be what is the confirmation that I need in order to enter this trade and this is actually probably the simplest thing for me to explain and it will have the most effect out of everything it is going to be I look for one confirmation to enter every single trade so if you were to be looking through the telescope at this micro grow insect you would be looking for one thing in order to be able to categorize it as a insect or categorize it as a fungus or categorize it as a virus you need one thing to confirm to you what category you would simply put it in well when I'm looking through the top down analysis which is our version of the telescope I'm simply looking for one thing to execute on this trade on whichever time frame it looks the best that is going to be a bullish engulfing candlestick if we're buying and a bearish engulfing Candlestick if we are selling so a bullish engulfing Candlestick is very self-explanatory it's a Candlestick that engulfs the previous Candlestick so it's one candle eating the last one when you're going up and then when we're looking to sell a bearish engulfing Candlestick which is one candle eating the last candle but now obviously headed to the downside now this is the most effective and the most strongest confirmation that I have pretty much seen and tested for the last 6 to 7 years and what it has given me 99.99% of My Success not only because I used it to enter a trade but because I avoided entering trades that did not have this confirmation and this is huge because imagine you zooming in through your telescope and trying to identify where this insect this micro is a virus or is a fungus or is an insect but you don't have the confirmation to do it you don't have your entry signal you can't categorize it into something if you don't have that confirmation so that saves you time wasting putting it into the wrong section you just simply categorize it as unidentifiable well same thing with trading but you don't categorize it as unidentifiable you just categorize it as not a valid trade a trade that does not have your entry confirmation you simply do not take an insect or an inspection that does not have your any your confirmation you can't categorize it as something because you don't have your confirmation it's very simple and what this engulfing Candlestick is is literally what it is it's an engulfing Candlestick when something engulfs something it pretty much eats it it just completely engulfs it so to give you a very simple example you guys can see right here there's engulfing candlesticks literally everywhere in the market this right here is a beautiful bullish engulfing Candlestick pattern right here this Candlestick clear ate this Candlestick right here is a beautiful bullish engulfing Candlestick right here this is also a beautiful engulfing Candlestick right here as you can see this blue candle has completely eaten the red candle as you can see right here this is also a beautiful bearish engulfing Candlestick so you can see this Candlestick has eaten these last three candlesticks this one has eaten the last Candlestick this this is a bearish engulfing Candlestick it has just eaten this Candlestick this literally happens absolutely everywhere in the market every single day and it is so effective because it is literally confirming that it is stronger it is giving you your entry confirmation because it is eating the last candlesticks it's doing the job for you it's giving you the confirmation that it's rejecting the area and it's going to continue going in your direction as you can see right here this is a beautiful bearish Eng gold in Candlestick it just ate the last 1 2 3 4 five candlesticks this right here bearish engulfing Candlestick it has literally eaten the last Candlestick so you want to make sure that the body has eaten and closed above the last Candlestick this right here bullish engulfing Candlestick beautiful Candlestick as eeden this one right here this beautiful bullish Candlestick has eaten the last one two three candlestick bullish engulfing Candlestick can make it literally we can be here all day looking at these patterns this is the most effective and the strongest confirmation that there can be when looking to enter a trade a bullish engulfing Candlestick when buying and a bearish Candlestick F and a bearish engulfing Candlestick when selling and to basically make it as simple as it can get is where the last Candlestick closes which would be this one right here as soon as the next one opens it just completely goes in the other way it just completely eats and does the opposite of what the other Candlestick has done as you can see right here this Candlestick closed this one open boom and it engulfed and it eaten the last two candlesticks very simple so as soon as you have your bullish engulfing Candlestick if you're looking to buy or your bearish engulfing Candlestick if you're looking to sell right before you click that buy button or right before you click that sell button you have to take one thing into consideration the last thing and that is going to be spread now what is spread well spread is the cost of doing business with these Brokers it is absolutely inevitable you're not going to get around it it is impossible if you want to take a trade in the market you have to pay spread and if you want to drive your car on the road you have to pay tolls tolls are when you go on the highway you have to pay the dollar the $2 to go through the highway and use the advantage so you don't have to go through the streets and take the red light and stops sign and all that stuff it pretty much expedites your journey to wherever it is that you're going to go whether you're going to the beach the gym you want to take the highway you got to pay the price you want to enter a trade through a broker you got to pay the price now the only difference in between the tolls on the highway and the spread in the markets is that the spreads in the markets they fluctuate they can be really really expensive or they can be really really cheap to almost even free now this is all based off of what time we're executing this trade and I'm going to explain in just a second the tolls on the highway don't change the prices because it's just a standard thing you pass through the toll point they're going to charge you a dollar $2 whatever it is that they charge whether there's a lot of people or whether there is a little bit of people whether it's traffic hour no traffic hour they're going to charge you the same fee every single time this never changes now in the market it changes based off of how many people are executing the market at that time the more people are in the market the less fee they're going to charge the less people in the market the more fee they're going to charge now think of it as a very simple way the more people that are in the market means the lower they can use f the lower that they can have the spread because there's more money being moved so they're making their money on volume and not a little bit amount of people but if there's a little bit amount of people they have to make their money by charging more it's very simple so if you're going to enter a trade and you have a high spread just take that into consideration you know spreads sometimes they can cost five bucks 10 bucks 20 simply depends how much you're going to risk but I'm telling you right now it is absolutely inevitable it is the cost of doing business you have to pay it if you want your trade to get executed into the market immediately through a broker and honestly we're retail Traders we kind of don't have a choice but when you you win a trade it's a very very small percentage it's probably 1 to 2% of whatever you're going to actually risk onto your trade and you'll notice that as soon as you enter the trade you're automatically negative that is because the broker is going to charge you that fee that spread fee as soon as they enter the trade they don't care if you win or lose they already got their fee because they already executed your trade into the market so you don't have to pay you know you can't choose when to pay it because you're going to automatically pay it right at the beginning and there's nothing that you can do about it you just simply have to be on the lookout and make sure that when you're entering the trade your spreads are lower than higher and this is going to be a major key because I've personally not taken trades because of how high the spread is you're probably wondering why well think about it let's say I am setting myself up to risk $100 on a trade to win $200 but the spread is $100 to enter the trade well not going to enter the trade because automatically as soon as I enter I'm going to lose $100 on the fee no matter what and then if I were to lose the trade I would lose another $100 so I'm losing more than I anticipated but if I were to win the trade I would only make $100 because they already took $100 out of the spread and this usually happens in sessions when there is nobody in the market and they simply have to charge you a lot to execute these trades and so the market but honestly this pretty much is not going to happen to you because you're only going to focus on taking trades at the right session and that leads me to this next point which is going to be what are the right trading sessions in the market and let me tell you this is major major key because it pretty much comes down to wherever you are in the world watching this video trading sessions are differ for everybody because the trading sessions will always happen at the same time but depends where you are in the world with your time zone how is that going to affect you and I'll explain right now so these are going to be the four trading sessions in the market of the currencies right so it consists of Sydney Tokyo London and New York and out of these four sessions only two of them are going to be the ones that you will only be executing trades in because if not the spread will simply eat you up so if you come to here to the market you guys can see that Sydney and Tokyo will be happening at these times GMT so you have to make sure you calculate this based off of where you are in the world then you have London session and then New York session as you can see right here this is the main trading session you want to enter either at the beginning or during London session so the trades can push throughout all of London and all of New York and continue with the momentum because Sydney and Tokyo have abs absolutely no volume in those sessions why because the big banks are closed and there's no money being moved here doesn't matter what currency pair it is now this is going to be a very blurry picture but I'm just going to show you the example of where there is more volume and where there is less volume so clearly you can see these zones right here that are dark green are going to be where the majority of the volume will be in and then the areas where there it's light green or Almost White there's absolutely no volume there's nothing you should be doing in these zones because there is no money being moved spread is very high and the market itself simply won't be moving that much because there's no volume there's no momentum volume also equals Market momentum uh trading session so on and so forth there's just no movement in the market so these sessions right here Sydney session and Tokyo section are very very very low volume it's very expensive to trade in these sessions and on top of that there's no Market volume so there's no Market movements happening at that time the market moves with volume so you want to trade at sessions where there's a lot more volume as you can see right here it's the beginning of London session and you can see right here when New York and London session overlap there's this massive chaos that happens because there's a lot of volume this is where you have the big swings up or the big swings down and then pretty much after London session and New York session overlap ends pretty much starts to die down and slow down then so you should only be looking to enter trades in between the beginning of London and the ending of London session kind of where it also meets the middle of New York session if you enter the trade in this session and it has not hit your takeprofit just yet or your stop- loss you simply said and forget and you're going to be holding throughout Sydney and Tokyo section until the next London and New York session which your trade should hit take profit or stop loss so you guys can see here how if you were to look at it on EST London session begins at 300 a.m. EST let me tell you it sucks I hate waking up at 3: in the morning but it pays I know if you're going to make 100K on a trade I guarantee you you'll wake up at 3: in the morning so you just have to see where you are in the world to see what time is London session for you I know Traders uh over in London get very great trading sessions because you know they have London session right in the morning and then New York session right in the afternoon so you're kind of trading throughout your regular 9 to 5 schedule versus over here in Miami time EST kind of sucks you have to pretty much be like a vampire and trade at night and trade in the morning as well so this all depends where you are in the world and you only want to focus in trading in London session and in New York session because it's the only session that there is volume volume equals less spread more movement no volume equals more spread less movement and you don't want to be involved in that and I don't make the rules the market does you can try and go trade Sydney and Tokyo and you're going to see how fast you will get humbled trust me I would much rather trade those sessions because of my time zone but simply doesn't work there's no session I mean there's no volume in those sessions there's nothing that I can do about it so those are the times that you can trade now that you understand that these are the times that you can trade it's time for you to hit the Subscribe button just subscribe you're this far into the video and you're not subscribed shame on you but no seriously after you subscribed you're going to want to make sure you stick around for this because it's the inevitable in trading and it's going to be slippage what is slippage how can you avoid it um what can you do about it and the answer is nothing there's nothing you can do about slippage well there's actually one thing you can do about it and that is not trade in the sessions you shouldn't be trading think of slippage like when [ __ ] happens in your life like let's say You're simply just walking out of the store with the groceries and the grocery bag breaks damn that sucks you don't want that to happen but [ __ ] happens you have to pick everything up up get another grocery bag and move on about your day it's like when you order coffee and you're walk into your car you trip you drop your whole entire coffee you simply have to get the cup throw it away and go get another one [ __ ] simply happens it's inevitable there's nothing you can do about it you can learn from it and you know watch out for wherever you tri you can make sure next time you double bag but [ __ ] happens you're going you know you're going to mess up right it's part of life well slippage is kind of as the same thing sometimes the market doesn't have enough liquidity sometimes the volume isn't there there's not enough movement and price can either miss your stop loss miss your take profit or you're just going to get charged more it's called slippage now there many different ways on how to look at this you can look at this as the broker's fault you can look at at the platform's fault you can just simply realize that you took a trade out of session and you took a trade when you weren't supposed to and you had a super tight stop loss and and news came out it's just so many different things can come into it but it just simply comes down to you just trading at the right session if you trade outside of the sessions you will not catch slippage you want to make sure that you are only trading in the right session and even as well sometimes you can put two bags and you can sometimes hold the coffee with two cups but and you can hold the coffee with two hands but you will still probably trip the bags will still break it's just [ __ ] that happens if I were to Simply say how many times I get slippage let's say out of 10 trades maybe one maybe and when that happens it sucks because that always happens to be the winning trade I don't know why it's the coincidence the day that you order the coffee and it spills is the day you need it the most the day that you get the groceries is the day that you were hungry the most it just happens it's part of life it's part of your trading routine slippage is simply when the broker the market does not have enough volume so they're going to miss your stop loss they're going to miss your takeprofit and they're going to charge you more it sucks but it's part of the process and the exact reason on why this happens is because let's say you have your stop loss at 1.500 and that is where you want to have your takeprofit well if when price gets to 1.500 and there's nobody in the liquidity closing that trade out on the other side or there's simply no money being traded at 1.500 the broker can't give you that money because nobody else is placing that other bet so how are they going to give you money on something that doesn't exist so there has to be a different player in the game to execute that trade on the other side well if it's not there they can't give it to you so let's say somebody is at 1. 14950 so five Pips below you well they can give you that one because that's where they have the liquidity at so that's why you'll make a little bit less or let's say it's at 1.400 now now it's 10 points less and it sucks the same thing happens with your stop loss let say you have your stop- loss at 1. and the market gets to 1. and there's no liquidity there and price keeps going down it they can only close you out wherever they have the liquidity and if they have the liquidity at 0.95 well you just lost an extra 50 Pips because the market simply didn't have it it sucks but honestly the odds of this happening are slim to none with this you know great magnitude next we're going to Tac so now that we understand that slippage is inevitable let's talk about what isn't and that is going to be leverage so Leverage is something that a broker pretty much requires for you to have when you're creating these accounts on whatever broker it is that you're going to choose you're going to have to select the leverage 1 to 50 1 to 100 1 to 200 1 to 500 1 to 1,000 right so when you first think of Leverage the first thing that should come to your mind is you are leveraging something for something you're leveraging one thing to get another thing in return we use it on our everyday basis business credit cards we leverage all the time so in trading it makes no difference but it's the type of way how it's leveraged for example 1 to 150 means for every $1 that you have in the account you have a buying power of $50 if you have a 1 to 100 for every $1 that you deposit into the account the broker will give you 100 times that buying power so obviously the higher the leverage the better because you can essentially use this credits or this money that the broker is giving you right they're actually not handing you money they're just giving you more buying power with your money to execute trades into the market now the higher the leverage the higher risk the lower leverage the lower risk I personally do not recommend any more than a 1 to 100 leverage you do not need a 100 times more money than you are depositing into the platform it just simply makes no sense and you don't need it the highest leverage I personally use right now is a 1 to 50 because obviously I'm risking a lot more money and I don't want to have the ability or the exposure to be able to use more of that because if you don't have a high leverage if for whatever reason you get slippage the broker literally cannot slip you out more than the money that they're allowing you to risk and more money than the leverage that they're giving you so it's kind of of a trap that you are forcing the broker because that way they pretty much have to take a loss on your position if they can't liquidate at the point where you are because a leverage simply doesn't let you so basically to sum it up Leverage is literally what it is you're leveraging more money that the broker is going to give you and for for every dollar it's X multiplier on whatever percentage that they're going to give you 1 to 50 1 to 500 I don't recommend more than one to 100 you don't need more to succeed in trading so now that we understand what Leverage is and how you can use it to your advantage and pretty much all the technical aspects of trading let's get into the most important topic in trading like get like drum roll editors this is the most intimidating and the most most challenging parts of any Trader that comes into the market that is going to be psychology so we're going to be now talking about the psychology battle that you will be facing yourself as a Trader when you begin this NeverEnding journey to become a successful Trader and I say NeverEnding because I am already a successful and profitable Trader and I still battle with psychology now obviously ly not to the same degree or the same level as I did 5 years ago four years ago 3 years ago but it's just it's a different type of psychology and different types of emotions but it's still there it's just at a different level but all of you guys will get to that level eventually and every single level that you grow you leave them behind but you unlock a new level of emotions fear greed so on and so forth so let's begin now I want you to keep in mind that this isn't something that I realized was important in trading into about a year into my journey because the person that you come into trading is not the person that you come out on the other side you literally come out on the other side as a completely different person like I've seen people that they would you know smoke weed they would party they would be lazy watch movies that they would get their attention grab by trading they get started and a year down the road they no longer do drugs they meditate every morning they read a book like trading will literally turn you into into like a completely new person you're going to visit parts of your emotions and you're going to learn things about you that no other Journey will teach because everything in trading is determined by you it is determined by the effort and by the point OnPoint mistake that you do if every single point mistake you do you avoid it you're going to be the only one that knows you're going to be the only one that pays for it if every single point by Point mistake you learn from it and you move on you are going to be the only one that knows and you're going to only be you're going to [ __ ] you're going to be the only one that grows from it so everything that you do in trading you will be the only one that knows you will be the only one that keeps yourself accountable and you'll be the only one that gets the benefit of it and will know if you're actually doing it and that freedom of accountability and that freedom of being able to do what you want when you want hold yourself and accountable if you want when you want how you want is a very big double-edged sword because you can choose to point the finger at yourself whenever you want whenever it's most convenient but whenever you don't want to you can point it to the market you can point it to the broker or truthfully to whoever you want to put the blame on and at the end of the day whoever you put the blame on no one's going to come and tell you anything because no one cares if you win or lose at the end of the day it's just you and the market and this is where you will visit the famous six different aspects of your personal self with your emotions and the battles that you will be facing you will be facing greed fear fomo money management accountability and procrastination and all of these are are going to be the six different psychology traits that will either end you or make you the first psychology barrier that you're going to battle with immediately is going to be greed you go on Instagram and you see a bunch of these Traders making 50,000 100,000 a day $200,000 a day and you automatically think I'm late I'm doing something wrong I should be in that position tomorrow I should be in that position yesterday the week before I've been you know not doing the things right this next trade that I make I have to make the same amount as that person and you're already making the first mistake and that is you're being extremely greedy looking at other people's pockets and looking at other people's trades comparing it to your own why are you going to base somebody else's decade in the markets to your first week in trading your first month even your first year that that's not how it goes if I were to be in the gym for 10 years and I have six packs and I have a great body and it's your first week that you come into the gym and you try and lift the same weights as me and you trying to keep up in the cardio with me it's almost disrespectful because you're almost not you're almost not even respecting the time that I put into it and the consistency that I did to get the results that I do and if you expect that you by coming in your first week you're going to remotely get anywhere near close to what I have it's just simply unrealistic you're simply having an illusion of what you think you can possibly be within that short amount of time span I'm a living proof that you can do it but with time and consistency now your greed is going to determine if you're going to put in that time or if you are not and by this greed is going to be the first thing that will knock you down because you simply aren't accepting who you are at that very point in time and realizing that you're not ready to make 10K a day or 20 30 40K a day because you haven't even made your first $1,000 a day so your greed has to completely be removed so you are now able to be content with yourself and the results that you are having so you can continue to grow within the market at the pace that you should be growing not just wanting to jump from level one to level 50 in one week because we analyzed the same chart that week or because you copied the same trade that I had for whatever reason and now you are saying well I caught the same trade as him I should make the same money as him no that is not how this works just because we're training at the same gym doesn't mean that we're going to have the same results next is going to be fear because as soon as you overcome greed then fear awaits you right there it's almost like you get over greed and now you got to get over fear because now that you realize that you're not at that level yet that it's going to take time well now you're scared of either risking the money that you should you're scared of making the money you should you're scared of the unknown you're scared of losing too much you're scared of winning too much you're just scared of everything as a whole and I get it it can be very intimidating because you have pretty much nobody to talk to right like at the end of the day us Traders we're in this [ __ ] alone like you can't ask anybody in your family I guarantee you nobody in your family knows what the hell this is you can't ask any friends because none of your friends have the same vision the same ambition as you to you're kind of alone and this fear you kind of just have to swallow it yourself because you don't want to you know put it out there to people that have no idea what this is so they're not going to know how to help you and by you doing this you're actually just doing more damage to yourself in a way because you can't just talk to somebody about money management and you know wins and loss es where they don't even know what a pip is so this fear is something that you have to overcome on your own you can get Consulting from anybody outside of trading because they simply won't understand and they won't connect with it and their advice if anything it could be damaging due to the fact to their lack of Education now they're not purposely trying to harm you but they will harm you due to their lack of information and you know awareness to the opportunity that this space brings and by and the simplest way of getting over fear is simply by showing up every single day and if the Market's going to punch you just get ready for the hit you know that in a couple hours after you get punched in the face you'll be fine and if you know next time you see the punch coming you know to you know clench a little bit and then over time you know to duck and you know to start avoiding it there's nothing you can do about it other than just face your fears and over time your fears are going to make you the winner that you will be at the end of the day because you learn from those mistakes fear can come in many different ways can either come from losing money scared to take a trade scared to try new things at the end of the day simply comes down to you having to face your fears to be able to learn from the the mistakes that you will make and then you move on and you capitalize from and as soon as you're finishing the Battle of getting over your fears and learning from them you're going to enter the the new battle that it's kind of greed and fear at the same time and that's going to be fomo which is going to be fear of missing out and your fear of missing out is only going to be because you have been putting time into the market and you understand there there's opportunities in the market and you've seen the opportunities to capitalize off of it you've seen the opportunities you've made money you've lost money and now you're at the point where you know the opportunity is there but you simply have fear of missing out and you don't want to miss out you want to be involved as much as possible so you can capitalize from these opportunities and this is something that it took me about i' say two to three months to get over uh luckily I was getting over it pretty quick because I simply woke up one day and I realized I'm like what do I have fear of missing out on what is it money right I'm I'm scared of missing out on the opport opportunity to make money with this skill set that I have learned or I'm learning and then I asked myself well are these opportunities going to end and instantly I said yes like I have to get it before they run out but then I had more of a logical answer I'm like well probably not the markets are going to be here for the next 10 to 15 years so why do I have to catch every trade why do I have to chase trades why do I have to take trades every don't make sense why am I trying to chase the money when the money is going to be here for the next 10 to 15 years well that's where I got a reality check and where everything changed for me because I realized that me chasing these trades or me wanting to get these trades that were running away and me having fear of missing out of these trades that were running away was actually making me lose more money cuz I was taking trades that didn't make sense I was just taking TR Trad because I thought the more trades I take the more money I would make and I was actually completely wrong and I had fear of missing out on all these different types of opportunities that the market had to offer but then I realized that the market is going to offer these opportunities forever as long as we have currencies in the world there's going to be opportunities to make money and I can guarantee you if all the currencies in the world are gone we got bigger problems to worry about than taking trades so the reality of the situation is the opportunities in the market are never going to disappear so why Chase trades and why have fear of missing out if you know that the ocean is going to always give you waves to Surf why are you trying to catch every single wave it simply makes no sense what you should do is wait on the beach and wait for the best trade [ __ ] wait on the beach and wait for the best wave to present itself so then you surf that one good wave not just try and surf every single wave like if the ocean's going to stop creating waves cuz I can guarantee you if the ocean stops giving waves we got a bigger problem to worry about and it's definitely not going to be surfing them at that point so the waves Fu so the ocean's going to always give you waves so don't have fear of missing out on that wave just know if you missed a nice wave well the ocean will give you another one next week or the week after that but it will come if you miss a great trade in the market well don't chase it you know the market is going to give you a great trade the week after that or if not the other one and this is going to be the strongest point that you need to adapt and understand as a Trader so you can reach that next mountain of becoming a successful Trader and only taking trades that make sense the moment I did this my trading completely turned 180 and I started actually making money and that leads me to my next topic which is going to be money management so if you know that the trades are going to keep coming and if you know that the waves are going to keep coming why are you going to give it your awe on every single wave that you take kind of makes no sense right because if you kind of give it your all in every single wave and you know you're taking every wave you're probably falling on all of them and they're probably not giving you a good ratio where if you're taking every single trade and you're risking all you got you're probably not going to make a lot of money cuz there's not a lot of opportunities that present themselves every single day so if you only take the good trades but then you lower your risk to only taking the right amount on those good trades that's where you become a profitable Trader and that is going to be the topic of money management you need to understand that you are in the game of money you're in the currency markets you're in the financial markets you're moving money if you do not have money management you will simply not succeed you need to treat trading like a business every single business they have budgets so 100% of the income a business gets a certain portion goes to payroll a certain portion goes into inventory certain percentage goes to savings certain percentage goes into reserves and another certain percentage goes back into marketing and then at the end the CEOs get paid B see how the money is equally distributed AB different departments well trading there's only one department and it's going to be one trade risk management and that's it so you need to divide your account in ways that is going to accept that risk management and you need to treat each trade with the right risk management you are not going to succeed if you do not to have risk management if you try and do this without risk management simply you can go and kiss your trading success goodbye because it will not work you need to risk a certain percentage of your accounts every single time you take a trade and you stick to that percentage now over time you can scale and you can risk more but you need to risk a certain percentage amount and that is it you can never risk more than you are obviously calculating and you can never risk less because then it throws off your risk reward ratio if you do not manage your risk correctly you will not succeed if a business has an amazing product it has an amazing service it has an amazing team but the finances of the business are not good the business will collapse it is the same exact thing in trading you can have the best strategy in the world you can have the best entry signal the best everything but if you do not know how to manage the money your trading will collapse so you need to be very true to the risk management and money management agement rules because this is not only going to remove your greed and fear but it's going to help you with your fear of missing out and only taking the right trades that you should be taking just think about it do you think these Traders at banks these Traders at institutions they're not using money management they're not using risk management obviously and you want to get as close as you can as a Trader to those guys and the moment you do that you're going to shift from a Gam Trader to a institutional Trader as close as you can with money management if banks are using money management if institution are using money management if Bankers are using money management why shouldn't you ask yourself that question so now that we understand that next is going to be comparing yourself to others so I know I'm kind of beating a dead horse here and I kind of explained it earlier with greed but this is a topic within itself because comparing yourself to others can go for positive or it can go for negative you should never compare yourself to anybody whether that person is above or below you you shouldn't use somebody below you to lift yourself up and be like ha you see now I am funded or now I've made my first $5,000 the person that didn't believe in me they getting started and they still haven't succeeded you should never compare yourself to somebody else to lift yourself up and you should never compare yourself to somebody that is above you to create a further Gap or for you to try and do whatever you can to catch up this is just a NeverEnding Circle because at the end of the day there's always a bigger boat there's always a bigger person out there and none of that [ __ ] matters all that matters is who you are and where you were last month and where you are this month if last month compared to this month you grew 20% you are 20% better than what you were last month and if this month compared to next month you are 20% better you have just grown 40% in 2 months imagine if somebody would have invested into you let's say your name had a stock or had a PA or whatever and they would have put ,000 onto your name and if you just grew 40% in the last two months you just made a 40% return on investment on that person's money I can guarantee that person is going to be very happy well that person has to be you nobody else other than you you compare yourself to yourself and you notice that if you invest in yourself and month after month you are gaining percentage and you're getting better you will see how by you investing in you that money will grow month after month after month do not compare yourself to anybody where they're above or where they're below you this is the most toxic trait that you can do to elevate yourself with somebody below you or to to push yourself away if somebody's above you and then last but not least is going to be kind of my favorite one and it's going to be procrastination now you're probably wondering why this is here and honestly it's actually more important than you can imagine because 99% of Traders out there know exactly what they have to do to succeed they know they have to use risk management they know they have to take less trades and they know they have to just focus on themselves and they don't do it you know why because they are procrastinating they want to test other things to see if they can try and make it happen before they go back and use the standard the basic the boring rules they're procrastinating their success because they're not taking action on what they should and this actually starts off with the beginning of your day if at the beginning of your day you don't simply make your bed you don't clean the dishes you don't throw away the trash you leave dirty clothes on the floor if you leave all of these things procrastinated for when you come back back into the house your mind is clouded indirectly of all these little tasks that you have to do that cloud your mind for what you are actually supposed to be doing and you're subconsciously making it okay to procrastinate the little things so when it comes to the big things you simply don't give it much importance because you think it's okay to procrastinate because you do it in your day-to-day basis with your normal life so why would it be any difference in your trading what actually all the difference you have to treat your day-to-day life exactly how you treat your trading if you procrastinate in your day-to-day life you're going to bring that same energy to your trading and it's going to affect you drastically because everybody knows what they have to do to succeed in order to make money in trading and you don't do it because you're procrastinating and you want to try out these other fugazy stuff because it's faster or more clickbait and it's not the slow and traditional way well that is your fault because you're procrastinating what you're supposed to be doing to what you want to be doing and procrastinating starts at the beginning of your day if you procrastinate throwing away the trash you're going to procrastinate on using the right risk management the moment you stop procrastinating you start doing what you have to do in your day-to-day life you're going to see how everything takes a turn in your trading because subconsciously you just know what you have to do because everything is out there for you to Simply follow and succeed with so now we are on the final stage ladies and gentlemen so if you're this far into the video you are actually committed because you are literally knowing everything that you need in order to be a successful Trader you understand what platforms to use what platforms to avoid you understand different types of trading you understand the technical analysis and the actual tools that you need to only focus on when analyzing the charts you understand trading psychology you understand the entries take profit stop- loss and now we are on the last step and that is doing everything together where we're going to analyze a trade and actually execute it together on metat Trader 4 so you guys can see how to actually place the trade put the lot size and to see if it hits take profit or if it hit stop loss so you guys have made it this far I'm very excited for what I'm about to show you guys so now the the first step to entering your trade is going to be to go to tradingview.com so first things first is you need to analyze what Market are we interested in buying and what Market are we interested in selling so as you guys can see right here we have Euro GBP which is the Euro versus the Great British pound and we have identified that this Market is bearish right so we're going to keep this very simple very straight to the point and you can see that this Market structure is heading to the downside you can see how the market structure was going upwards and then how the market all of a sudden then had a complete breakout of this now the market heading downwards so this Market has shifted from bullish to then bearish so this is our first indication that we are looking to enter a trade and that is the trend you need to make sure that you are trading with the trend like I cannot stress this enough and the moment you start trading with the trend not only are you going to win more but you're going to facilitate the way your trades are going to go in your direction they just go so much faster and so much smoother so make sure you trade with the trend the trend is your friend I I've said it 100 times write it down on a stick you know this is extremely important next is going to be you want to have your strong level of support and resistance so let's determine that we identify this zone right here as a strong level of support and resistance if we continue to drag it to the left we can see how this is a very well respected level of support one above level of support one above level of resistance one under level of resistance went under level of support went above and in this case we are under so what does that mean well that means that not only do we have the trend bearish but we are under a very strong level of support and resistance so this is going to be another indication that we should be entering this trade to sell versus to buy because again remember at the end of the day all we're doing is painting a picture on what makes the most sense does it make more sense to buy or does it make more sense to sell and as of right now we're already building two reasons why we should be selling versus buying next is we want to then go to the lower time frame and look for our entry signal and as you guys can see this right here would have been our entry signal at this point right here which would have been this bearish engulfing Candlestick which it presented it on the 1 hour and here on the 2hour we have a beautiful bearish engulfing Candlestick so we have a beautiful rejection from the level of resistance the trend is bearish and we have a bearish engulfing Candlestick which is our entry signal so this is where we' be ready to take our trade but we can't just take the trade we have to then actually put our risk to reward ratio in order to see if this trade makes any sense so if this were to be the area of Interest it would be 10 Pips and we want to give it anywhere from 5 to 10 Pips breathing room above or under the area of Interest above the area of interest if we're selling under the area of interest if we're buying in this case we are selling so we want to put it five Pips above so this is where we would add an extra five Pips which would be at this point right here and we would have a total of a 15 pip stop- loss and then our take profit would be at the next structure Point as you guys can see this would be the next structure point right around here in this area let's go down to the 4our time frame just to make it more clear and right here would be our take profit so as you guys can see this trade would be a low risk to reward trade why because we do not have a one to two risk to reward so now we have to ask ourselves what should we do should we create a longer takeprofit to around this area so we have a one to two risk reward or should we minimize our stop loss just a little bit so we have a one to2 risk to reward well there you can determine on what does the trade need less does the trade need less of a bigger take profit or does it need less of a bigger stop- loss just have to determine what does it need me personally I would always much rather have a bigger stop loss so the trade can have more room to fluctuate and then you just set and forget I don't mind getting an extra 5 10 Pips to get the total of the one to two risk to reward so this right here would be our trade that we would be interested in executing immediately because we have our entry signal everything that we're looking for the trade and you guys can see that this is currently the live market you can see how the time right here is running you can see how it matches the time right here this is the live price on this market so now we would be ready to take our trade but we can't take our trade just yet because we have to calculate our risk well that's where we would come over here to my position size calculator and we would put the pair that we'd be trading for example we be trading Euro gvp the currency is USD and what account size do we have well let's actually create an account right now on metatrader as a demo account so we can put all of this fullprof test and I can also explain to you a little bit more on how metatrader works so I'm going to actually get onto my phone now and just show you how it's going to work here so as soon as you enter metat Trader and you log in you probably have a demo account or you probably won't have anything right so this is what you would be seeing immediately let's just create an account right now really fast so I can walk you through all of the settings that the platform has to offer so you want to go over here to the bottom right corner which is going to be the settings and as soon as you click the settings button you want to click the top one where it says trade accounts and then new account so you want to click on the new account button and then here it's going to give you the option to open a demo account or log into an existing account so right now we're just going to open a demo account so we can take this trade and I can show you guys how everything works you want to click on the meta quotes demo server which is the first one that pops up right there next is going to be the information that you're going to fill out so I just put this random number 305 552 2525 I'm sorry if that's a real number cuz about like a million people are going to see this right now so I'm sorry just make up a random email and then you click your Forex account is going to be USD your Leverage is going to be 1 to 100 and then you can deposit into your account whatever you want whether you want 5,000 10,000 we can just do a simple $5,000 into this account and then you simply just click register as soon as you register this is going to be the login to the actual account and then you would click done as soon as you click done you will notice how now all of these different currency pairs will load up and then when you click the middle button which is going to be the trade area where you're going to see the trades live you can see how you have your $5,000 deposited into your account and if you click the bottom right button which is going to be the settings you can see how this is your demo account that you have just opened and created so let me just walk you through this whole entire platform so I'm going to explain to you the things that I use and the things that I don't use and the only things you will be needing to focus right so all the way to the bottom left is going to be the quotes this is basically the different types of currency pairs the same thing that we are analyzing on trading view but this is where you are actually going to execute you're going to actually execute the trades right here on this this app so there's two different versions how you can see this there's the simple version and then there is the advanced version the advanced version is the most ideal because you can see how right under Euro USD you can see the spread that the market is offering at this point so you can see this under every single currency pair and you can see at every given point what are the different types of spread is it going to make sense for you to take the trade or not because if you were to look at it in the simple version you would simply not be a able to see the type of spread so you want to make sure you always can see the spread that the currency pair that you're looking to trade has to offer and if you notice we're looking to trade Euro GBP but in here I don't see Euro GBP you have EUR USD gbpusd USD JPY USD CAD USD CHF nzdusd audusd AUD nzd and AUD CAD these are all different types of currency pairs if you simply click it you can see how it's going to say Euro versus the dollar GBP versus the Great British pound the US dollar versus the Japanese Yen and the list goes on forever but we're looking to trade Euro GBP and where is it I can't find it Well simply click the top right plus corner and then you click search as soon as you click search you just type in the currency pair that we are looking to trade which is Euro gvp you can see it pops up right there just click the little plus sign and it will automatically get added onto the list and you can see it's the last currency pair of the list which is this bottom one all the way over here which is the Euro versus the Great British pound which is the trade that we are analyzing on trading view that we are interested in selling next the button is going to be the charts which realistically this chart we will never be using simply because we are looking at the charts on trading view so we will never ever ever ever use this chart option the next one is and every single button in this section we will not be using I've never used it don't plan to use it ever don't need to use it next is going to be the trade which is the middle section this is where you're going to see your balance this is where you're going to see your margin and where you're going to see your trades floating in profit you click the top right uh Corner which is the plus and it's going to pretty much get you into a trade immediately so you want to be very careful clicking that button and we're just going to actually enter a trade right now in just a second next is going to be the history button which here you can see the history of your trades uh whether it's a day during the week month or you can customize it for as much time as you want to do it obviously we just created this account so it's going to pop up as if it were to be deposited and if we look to the bottom right corner which is the last option you can see all these different type of options I literally do not use any other option other than the top option which is simply logging into a new account I don't use the mailbox I don't use the news I don't use Trade Days chat and messages Traders Community OTP interface charts journal and settings I don't use absolutely any of those buttons I never have and I'm simply not interested in it so now moving back over to quotes we have our Euro GBP trade oh and I forgot one button which is the top left corner pencil this is if you ever want to delete a currency pair simply click it trash it and you get rid of it if you want to add it back simply click the right plus sign search it up very simple to add it back right so now that we are ready to take our Euro GBP trade we need to see well we just created an account with $5,000 so let's actually make our way back to my fbook position size calculator and this is where we would change the account size to $5,000 and we have to ask ourselves what do we want to risk from this $5,000 do you want to risk 1% 2% 3% 4% for this example let's just do a basic 2% then what is your total amount of Pips in your stop- loss well you don't know where you forgot come back over here to Euro GBP and you can see how we have a 15.1 pip stop-loss we can just round it off to 15 we were to come back over here to the stop loss we put 15 Pips and then the trade size and lots always stays as one and then here we click calculate as soon as we click calculate it tells us that we have to place a 0.53 lot on this trade well it's exactly what we're going to do right now so we come over here back to the quote section and now it's the moment of actually executing this trade that we are looking at on Euro GBP so we want to click here Euro GBP before we we click it we make sure our spread is below 10 anything below 10 is a great spread and as of right now it's three so it's pretty much almost free to enter the trade think about three as a dollar and four or five each dollar anything above 10 you know $10 to enter a trade very expensive so you simply click here and you're going to click the trade button and this section will pop up because if you come to this section and you click the charts it's going to take you to the button next to the quotes which you simply don't need and if you click the button under that which is going to be details it's just going to take you to these details which you simply don't need and can't do anything with it so you want to click this button and click the trade option here you're going to see that you have Euro GBP which is the market that we are trading if you want to change currency pair you click that and it's going to change it for you but obviously we're interested in trading your GBP so we're going to stick to that then the button app under that is going to be do you want an instant execution do you want a buy limit sell limit buy stop sell stop we will only be using Market execution instantly we do not want to place market orders Market orders are orders when you want to place a buy stop so when the market gets to there it stops IT enters a buy for you but I personally don't think that's the right way of trading because you're not basing your strategy off of a visual confirmation it's whenever price gets to a certain area you want the market to enter you immediately and I see that as extremely high risk and absolutely no probabilities you're just taking a trade off of momentum makes no sense so we will always only take trades on instant Market execution so every single time you come to a trade when you click trade it will pop up you don't have to do absolutely anything then the numbers right under instant execution which is a 0.01 this is where you're going to click it and you're going to place the 0.53 lots that the mybook position size calculator has given out to you and that's it it's very simple here you're going to then go to the trading View and your stop loss which is going to be this section right here you can see that the stop loss is 0. 85768 so we're going to put our stop loss 0. 8576 68 and then our take profit is this section down here where this green number is which is 0. 85313 and that is it now are we ready to buy or sell well we're ready to sell so we're going to click the sell button and just like that you have been instantly executed into the market and as you can see as soon as we enter this trade we are negative negative because the market is going to charge its spread it's going to charge its fee it is absolutely inevitable and as you can see since we had a low spread the cost to enter this trade was literally a dollar so it was extremely cheaper so what we do now is the famous set and forget literally we just enter the trade and we just set and forget it's going to either hit your take profit or it's either going to hit your stop loss it's going to do either one of the things for you if you were to click the live trade right here you have to hold it in order to obviously execute it you want to close it modify it so on and so forth but you can see how you have your stop loss in place and you have your take profit in place so whatever you decide to do about your day you can rest assured that the market is going to take you out at the at the loss that you calculated and at the win that you calculated whichever one of them happens first so we just let about 7 minutes go by and we are currently up now now three well $4 now we're up about $3 so trade is going in the direction that we were predicting obviously is very little momentum but just wanted to show you guys what it looks like when you're in profit so when you're not in profit the screen is red when you're in profit the screen is blue so this is what it looks like right now because the trade is in profit so we're going to close this trade in the case that we would not want to have our takeprofit get hit or our stop- loss get hit because that'll happen automatically so we can simply just come here and then you would hold it and then you would simply click close trade and it would ask you here are you sure you want to close with $336 in profit now it's $269 in profit now it's back to 336 because it's actively changing and it's giving you the real price data letting you know do you really want to close it with this amount much amount of profit you simply say yes you click it and as soon as you click it you have been liquidated from your position and you can come here to the history so you can see we have made $336 in about 7 minutes now according to my calculations it'll take you a while to become a millionaire with this but you are a profitable Trader so if you notice you don't even see the minus $1 that the spread was taken this is because it was taken automatically when you took the trade so if we would have lost this trade and we calculated a $200 loss if we would have hit our stop- loss we would have actually lost $21 but when we win a trade we don't see the spread because it was already removed from the beginning so this is a perfect example on why you should win instead of losing and trade so I want to congratulate you because you've made it this far because you have officially all of the resources that you need to become a Trader now the only thing that you are missing is simply a profitable strategy you guys saw how easy I simply an analyze this chart in a matter of 1 minute by identifying the trend after we identified the trend we simply found the zone why it should be selling from there versus buying and you can see how we got our entry signal and then the time that we're taking this trade is right before London session you guys are seeing how having a strategy makes the trade make sense you're supposed to treat every single trade as if it were to be an investment and this investment you have to present it to your friends your family member or even an investor and if you don't have a full explanation on why this trade should go in One Direction versus the other then you don't have a good trade you're supposed to explain the trade with so much detail and it makes so much sense that the person you're talking to is going to Simply want to take the trade with you because it makes more sense on the trade going in that direction versus the other and the way you create this direction bias that you know where it's going to go it's based off with a strategy once you have a profitable strategy and a winning strategy not does only analyzing the markets become easy but making money in the markets becomes even easier because you are literally applying a profitable strategy and a strategy that is foolproof and works that you can create this Edge and when you analyze the markets it makes more sense to go in One Direction than the other because at the end of the day the market is either going to go up or it's going to go go down so it's already a 50/50 game all you have to do is build a little bit more of an edge towards one way so you can simply take your trade and set and forget and then over the course of my 7 years of this never-ending trading journey I have been able to filter out what strategies work and what strategies don't like you guys can see in this video alone I have literally provided to you what took me about 2 years to figure out of all the tools and all the resources that you should learn in order so you can start applying buing a strategy in this simple one video and that is just what is out here publicly on YouTube the set and forget strategy that I have created has the highest success rate and the most Simplicity and Effectiveness when it comes to identifying the direction of the market whether you're going to take a trade for a buy or whether you're going to take the trade for a sell so if you think that this video was educational and that it had a lot of value imagine how you can create an insanely Edge over the market with the set and forget strategy now if you don't know what the set and forget strategy is all you have to do is click the link in the description below I have a video there for you that explains exactly what it is and it lets Traders make anywhere from ,000 to $1,500 a week in their first three months as a beginner set and forget Trader these are traders that have no idea what the market Direction was before and now they're applying a successful strategy that lets them make anywhere from ,000 to $1,500 a week as a beginner Trad so if you want to know more about set and forget and what it means and how it's let me make over $10 million in trading in the last 7 years make sure you click the link in the description below because it's going to explain to you in extreme detail it's going to have a lot more value than what this video has explained so far oh and don't worry you wouldn't be the first we have over 3,000 members that get on a call with me every single week where I give them this Market direction that I am personally taking with my own trades so you're not going to be in this alone you're going to be in a call with me every single week where i' be sharing with you my top three trades that I'm going to be trading with that week and I'm going to give you the direction in order you take the same trades as I do and you have the same results as I do so I'll see you in the link below and make sure if you like this video make sure you hit that like button and make sure to subscribe because this took a lot of time and effort not just making it but learning it in my first two years so with that being said I will see you guys in the next one